China’s fintech industry needs regulation to avoid risk build-up, central bank says

One of the fastest-growing segments of the shadow banking industry was peer-to-peer (P2P) lending. — SCMP

China’s central bank has again warned that the country must avoid building up risks in the technology-driven development of its domestic financial sector, given the headwinds of a slowing economy and the continued trade war with the United States.

Pan Gongsheng, deputy governor of the People’s Bank of China (PBOC), said that financial technology (fintech) should be regulated in accordance with the law and in line with policy initiatives intended to prevent financial risks, according to local media.