Where is Fintech in China Headed? DaHui Weighs In for Chambers

At the invitation of Chambers and Partners, DaHui recently produced an extensive guide on fintech in the PRC market for 2023, comprehensively assessing this highly innovative business sector and the market changes that have emerged over the past year. Authored by DaHui team members Cloud Li, Gary Li, Joanna Jiang, and Chris Beall, the guide examines fintech in China from two main angles: Law & Practice, and Trends & Developments.

PRC Fintech Law & Practice

“The year 2022 in China largely entailed the continuation of recent trends, both in the fintech market and the Chinese economy as a whole. As the Chinese economy continues to grow despite the continuation of the COVID-19 pandemic and geopolitical tensions, the fintech sector in China has also seen good growth. It is expected that regulators will continue to strengthen their supervision of the fintech market in the coming years, while still encouraging innovation, especially in risk prevention in the long term. However, the fintech market in China remains dynamic, with increasingly diversified market players, and the prospects are still broad. As new infrastructure has risen to the height of China’s national strategy, the deep integration of artificial intelligence, blockchain technology, cloud computing and big data will continue to promote the development of fintech into a new stage. The fintech business model may be reshaped so as to better serve the real economy and inclusive finance.” - Chambers And Partners Fintech 2023 Practice Guide, China

From P2P loans to NFTs to algorithmic trading, the guide begins with an extensive overview of fintech-related activities in China and the many – and often new – PRC regulations that govern them. Topics include local regulators' approach to blockchain, open banking, fund trading platforms, payment processors, online lenders, robo-advisers, and more – all from a comprehensive PRC legal perspective.

Fintech in China: Key Trends & Developments for 2023 and Beyond

The guide also dives deep into key China fintech developments and trends, such as AI breakthroughs, continued regulatory formalization, heightened enforcement, China’s digital currency ambitions, the PRC government’s crackdown on cryptocurrency, the future of blockchain in China, and much more.

“The PRC fintech space continues to present a fertile ground for further advancements in this important global technology, thereby providing unique opportunities for entrepreneurs and established participants. At the same time, as government regulations concerning the PRC fintech industry and wider cybersecurity considerations in China continue to formalise, this increasingly intricate web of laws and regulations may present some operational challenges, and will surely and constantly shape/reshape fintech’s development in China long into the future. Although there may be growing pains in this process, this is ultimately viewed as a healthy situation, ensuring that China adopts the best global standards in cybersecurity and data-handling practices, while encouraging further innovations that will maintain China as a leading player in the fintech space for years to come.” – Chambers And Partners Fintech 2023 Practice Guide, China

DaHui is honored to be a Chambers contributor to this guide, as well as to various other Chambers Global Guides such as Corporate M&A, TMT, Fintech, Sports, and more. Chambers has continuously ranked DaHui as a leading firm in the Chinese fintech sector ever since the first edition of the Chambers FinTech Guide.