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RegTech and regulators’ error detection activities: Evidence from China

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  • Xia, Changyuan
  • Ye, Yingzi
  • Yu, Haizong

Abstract

Focusing on the adoption of regulatory technology (RegTech) by Shenzhen Stock Exchange, this study examined how it enhances the accuracy of the regulatory oversight process and found a significant reduction in Type I (false positive) and Type II (false negative) errors. Furthermore, improved information accessibility and reduced resource constraints facilitate these improvements. These findings provide new insights into the role of digital technology in regulatory oversight and offer broad implications for supervisory practices in financial markets.

Suggested Citation

  • Xia, Changyuan & Ye, Yingzi & Yu, Haizong, 2025. "RegTech and regulators’ error detection activities: Evidence from China," Finance Research Letters, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004611
    DOI: 10.1016/j.frl.2025.107198
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