A series of financial technology (fintech) pilot programs were recently launched for Beijing's capital market, outlining the city's latest ambitions in the construction of its "two zones": the National Comprehensive Demonstration Zone for Expanding Opening-up in the Service Sector and the China (Beijing) Pilot Free Trade Zone (FTZ).

The pilot programs were jointly initiated by the Beijing branch of the China Securities Regulatory Commission (CSRC) and the Beijing Local Financial Supervision and Administration Bureau, and look to foster the digital transformation of the city's capital market and facilitate its high-quality development.

The bureau's head, Huo Xuewen, explained that Beijing's plan to ramp up its technological efforts in finance, supervision, and compliance of its capital market to build local enterprises' core competitiveness and improve its service capacities.

The capital market has long played a key role in the development of Beijing's financial sector, building the city into a national center for financial management. 

While the accelerated integration of finance and new technologies has effectively improved the efficiency of financial services, the fast-changing outlook of fintech also poses new challenges for supervisors concerning their concepts, methods, and abilities. 

Jia Wenqin, head of the Beijing branch of the China Securities Regulatory Commission (CSRC), believes that the pilot programs have provided innovative, strategic opportunities for the city's fintech sector. Jia stresses that such policies will help build Beijing into a world-class fintech ecosystem.

"The innovative pilot programs will adhere to the principles of compliance with laws and regulations, orderly innovation, and controlled risk," said Lin Wen, deputy head of the Beijing branch of the China Securities Regulatory Commission (CSRC). Lin added that experiences gained during the programs' implementation process will later be promoted to other regions in China.

The pilot programs will be implemented over the long term in order to effectively explore new means for fintech supervision in Beijing's capital market, said Lin. Companies have been able to apply for pilot qualifications as of March 1. Following application, solicitation and project review will be carried out in batches and a mobilization and deployment meeting will be held before the application is officially launched.

It is believed that such programs will help boost innovative efforts amongst companies for the orderly development of fintech. Meanwhile, securities and fund companies in the city are also encouraged to pay close attention to the global asset management reform and its digital transformation.

Yao Qian, director of the Science and Technology Supervision Bureau of the CSRC, describes how relevant institutions should participate in the pilot program and build new financial infrastructures to facilitate the digitalization of the capital market. Yao also suggested that relevant government bodies manage risks and provide support for the pilot program.

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