The China Securities Regulatory Commission (CSRC) and the Australian Securities and Investments Commission (ASIC) have entered into an agreement to promote innovation in financial services in their respective markets.
The Information Sharing Co-operation Agreement adds to an already strong Australia-China trade and investment relationship, where China is Australia’s largest two-way trading partner in goods and services (valued at $155.2 billion in 2016, up 3.7% on the previous year). China is also our largest export market ($93 billion in 2016) and our largest source of imports ($62.1 billion in 2016).
ASIC Chairman Greg Medcraft said China is a world leader in financial technology (‘fintech’) investment, development and adoption, particularly in customer-facing areas like payments and lending.
In 2016, total investment in Chinese fintech ventures is estimated to have been US$10 billion (approximately A$13 billion. Digital payments transacted in China made up almost half the total global volume.
“Co-operation between regulators is essential to realise the benefits of the technological revolution. Understanding new developments and their impact in overseas markets helps us to remain proactive and forward-looking in our domestic approach,” Mr Medcraft said.
“This Agreement represents an exciting opportunity for us to learn more about the Chinese fintech sector, which is renowned for its success and dynamism. We also look forward to sharing our insights and experiences on regtech with the CSRC.”
CSRC Chairman Shiyu Liu said the recent rapid development of fintech has created ample opportunities to introduce new financial services, enhance financial inclusion and fulfill investors’ needs.
“However, financial market regulators around the globe also face new requirements and challenges posed by market innovations,” Liu said
The Agreement between CSRC and ASIC will provide an effective channel for timely exchange of information on fintech developments and regulatory issues, and enhance regulatory cooperation between the two authorities.
The Agreement provides a framework for information sharing between the two regulators.
