Experts call for China to promote digital financial openness

A report released by the China Finance 40 Forum (CF40) Institute on Friday underscored China's digital financial potential which can be unlocked through embracing openness, robust regulation, and fostering innovation.

The report highlighted the ability of digital finance to reduce costs, boost efficiency, and enhance the quality of financial services for the real economy.

Therefore, developing digital finance is in line with China's 2023 Central Financial Work Conference's call for accelerating the building of a nation with a strong financial sector.

The report noted that China has had a head start in the field of digital finance. It has developed a number of successful and world-leading digital businesses over the past two decades. This provides China with a strong foundation to becoming a digital financial powerhouse.

Experts made the following recommendations in the report:

1. Promote digital financial openness in both directions. This would allow Chinese digital finance companies to expand into foreign markets and foreign digital finance companies to enter the Chinese market.

2. Build a regulatory framework for digital finance. This would clarify the regulatory responsibilities of different authorities and improve the coordination of regulation.

3. Offer expertise in digital financial services to Belt and Road Initiative partner countries. This would help partner countries to build more convenient payment systems and efficient investment models.

4. Establish regulatory sandboxes to foster innovation in digital finance. This would allow new products and services to be tested in a controlled environment.

The report also recommended that the Shanghai Free Trade Zone (or Lin-gang Special Area) and the Guangdong-Hong Kong-Macao Greater Bay Area be designated as digital financial innovation zones. This would provide additional space for incubation of innovative businesses.

The report was released at the 11th CF40 Nansha Financial Salon in Guangzhou hosted by CF40, the CF40 Institute, and the Institute of Digital Finance at Peking University.