A Review of Fintech Regulations in China, Singapore, and Hong Kong
top of page
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 22 March 2018

A Review of Fintech Regulations in China, Singapore, and Hong Kong

Chee Yuen Yew, Ameen Talib

Coventry University (Singapore), Singapore University of Social Science (Singapore)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.01.01.5

Abstract

The world has transformed from traditional business model into digitalised business model, financial services as well. As financial sector is strictly regulated by worldwide regulator in the past, there’s the dilemma on the regulation in the combination of Financial Technology (“Fintech”). This paper has selected three samples of emerging countries in Asia to examine the current regulations development. In the end of the paper, there is a comparison of regulatory framework between the samples of countries in order to have more understanding on how the regulator had been working on the Fintech industry to overcome the uncertainty.

References

Ainger, N., 2017. Monetary Authority of Singapore teams up with World Bank's IFC to encourage Asian fintech innovation, s.l.: CNBC.

Andrew, 2015. China: Equity Crowdfunding Regulations Published. [Online]
Available at: http://blog.sharein.com/regulations-allowing-china-share-crowdfunding-revolution-published/
[Accessed 21 May 2017].

Angier, N., 2017. China sets up fintech committee at central bank, s.l.: CNBC.

Barbara, L., 2015. China issues comprehensive regulations on internet finance, s.l.: Norton Rose Fulbright.

Barberis, J., 2014. The Rise of FinTech - Getting Hong Kong to lead the digital financial transition in APAC, Hong Kong: Hong Kong Fintech.

Barreto, E., 2017. Hong Kong should up its fintech game to remain relevant: council, Hong Kong: Reuters.

Belleflamme, P., Omrani, N. & Peitz, M., 2015. The economics of crowdfunding platforms. Information Economics and Policy, pp. 11-28.

Bermingham, F., 2017. Can Hong Kong compete with Singapore as fintech hub?. [Online]
Available at: http://www.gtreview.com/news/asia/can-hong-kong-compete-with-singapore-as-fintech-hub/

Bloomberg, 2016. China Imposes Caps on P2P Loans to Curb Shadow-Banking Risks. [Online]
Available at: https://www.bloomberg.com/news/articles/2016-08-24/china-imposes-caps-on-p2p-lending-to-curb-shadow-banking-risk
[Accessed 21 May 2017].

Caixin Survey, 2013. Will shadow banking cause a crisis in China?. [Online]
Available at: http://service.caixin.com/pollcode/resulten/batch/576
[Accessed 16 May 2017].

Capgemini & BNP Paribas, 2016. 2016 World Payment Report, s.l.: Capgemini and BNP Paribas.

Cellan Jones, R., 2016a. Zano: The rise and fall of Kickstarter's mini-drone. [Online]
Available at: http://www.bbc.com/news/technology-35356147
[Accessed 16 May 2017].

Cellan-Jones, R., 2016b. Powa: The start-up that fell to earth. [Online]
Available at: http://www.bbc.com/news/technology-35860814
[Accessed 16 May 2017].

China Banking Regulatory Commission, 2017. The CBRC Issued the Guidelines on Online Lending Fund Depository Business. [Online] Available at: http://www.cbrc.gov.cn/EngdocView.do?docID=D711DD12CF3C4AB09B14C9F4080604D7  [Accessed 21 May 2017].

Companies Registry, 2016. MONEY LENDERS LICENCE ADDITIONAL LICENSING CONDITIONS. [Online]
Available at: http://www.cr.gov.hk/en/publications/docs/Additional_Conditions-e.pdf
[Accessed 18 May 2017].

Computer World, 2016. Hong Kong consumers owns more than one wearable devices. [Online]
Available at: http://cw.com.hk/news/hong-kong-consumers-owns-more-one-wearable-devices
[Accessed 2 June 2017].

Deloitte & Touche LLP, 2016. Navigating the year ahead Banking regulatory outlook 2017, s.l.: Deloitte & Touche LLP.

Desai, F., 2015. The Fintech Boom And Bank Innovation. [Online]
Available at: https://www.forbes.com/sites/falgunidesai/2015/12/14/the-fintech-revolution/#763bf095249d
[Accessed 21 May 2017].

Elena-Iulia, 2014. The impact of the Internet on the business environment. Procedia Economics and Finance, Volume 15, pp. 951-958.

Elinor, L. & Xia, H., 2011. Buying into e-commerce: Transforming China in an online market. [Online]
Available at: https://www.slideshare.net/Digicha/clsa-82011-blue-book-on-china-ecommerce
[Accessed 14 May 2017].

Erdenebileg, Z., 2016. Better Together: Assessing the Potential of Crowdfunding in China. [Online]
Available at: http://www.china-briefing.com/news/2016/10/13/crowdfunding-in-china.html
[Accessed 15 May 2017].

FInancial Services Development Council, 2016. Introducing a Regulatory Framework for, Hong Kong: FInancial Services Development Council.

Financial Stability Board, 2017. Ten years on: fixing the fault lines of the global financial crisis. [Online]
Available at: http://www.fsb.org/wp-content/uploads/BdF-Financial-Stability-Review.pdf
[Accessed 18 May 2017].

Glova, J., Sabol, T. & Vajda, V., 2014. Business Models for the Internet of Things Environment. Procedia Economics and Finance, pp. 1122-1129.

Han Kun Law Offices, 2015. China issues the long-awaited guidelines on Internet finance, s.l.: Lexology.

Hardasmalani, R., 2016. Cashless is king, as MAS maps out e-payment future, Singapore: TODAY.

HKEXnews, 2013. Industry Overview, Hong Kong: HKEXnews.

Hong Kong Lawyer;, 2015. Hong Kong Concludes Payments Regulation Consultation. [Online]
Available at: http://www.hk-lawyer.org/content/hong-kong-concludes-payments-regulation-consultation[Accessed 21 May 2017].

Hong Kong Monetary Authority , 2017. About the HKMA. [Online]
Available at: http://www.hkma.gov.hk/eng/about-the-hkma/hkma/about-hkma.shtml
[Accessed 18 May 2017].

Hong Kong Monetary Authority, 2016. Co-operation Agreement between the Hong Kong Monetary Authority and the Financial Conduct Authority on fintech co-operation. [Online]
Available at: http://www.hkma.gov.hk/eng/key-information/press-releases/2016/20161207-6.shtml
[Accessed 28 May 2017].

In, L., 2017. Big data: Dimensions, evolutions, impacts and challenges. Business Horizons, 60(3), pp. 293-303.

Jiamin, L., 2015. Guiding Opinions on Promoting the Healthy Development of Internet Finance. [Online]
Available at: https://www.mizuhobank.com/service/global/cndb/economics/briefing/pdf/R216-0029-XF-0105.pdf
[Accessed 18 May 2017].

Kendall, J., 2017. Fintech Companies Could Give Billions of People More Banking Options. [Online]
Available at: https://hbr.org/2017/01/fintech-companies-could-give-billions-of-people-more-banking-options
[Accessed 1 June 2017].

Kiem, R., Potel, G., Trillmich, P. & Weir, G., 2016. Regulatory and business challenges to fintech M&A. [Online]
Available at: https://www.whitecase.com/publications/insight/regulatory-and-business-challenges-fintech-ma
[Accessed 17 May 2017].

KPMG International Cooperative, 2017. Q1’17 edition of KPMG International’s Pulse of, s.l.: KPMG International Cooperative.

KPMG, 2016. Fintech in India - The Global Growth Story, s.l.: KPMG.

KPMG, 2016. Singapore Payments Roadmap , SIngapore: KPMG.

Kumaravadivel, T., 2013. An Overview of the Chinese banking industry. [Online]
Available at: http://www.qbreview.org/an-overview-of-the-chinese-banking-industry/
[Accessed 18 May 2017].

Legislative Council, 2016. Regulatory and related arrangements to tackle malpractices by financial intermediaries for money lending, Hong Kong: Legislative Council.

Legislative Council, 2017. Press Release. [Online]
Available at: http://www.legco.gov.hk/yr16-17/english/press/pr20170206-1.html
[Accessed 16 May 2017].

Lockett, H., 2017. China P2P industry lending nears Rmb1tn despite crackdown, new regulations. [Online]
Available at: https://www.ft.com/content/160e89aa-cbc4-330c-8b18-6716378cca3f
[Accessed 16 May 2017].

Martin, T., 2015. Legal News & Analysis – Asia Pacific – China - Insurance & Reinsurance - See more at: http://www.conventuslaw.com/report/china-new-circ-requirements-for-internet-insurance/#sthash.qzuFNoB4.dpuf, s.l.: Conventus Law.

McKinsey & Company;, 2016. Cutting through the noise around financial technology. [Online]
Available at: http://www.mckinsey.com/industries/financial-services/our-insights/cutting-through-the-noise-around-financial-technology
[Accessed 27 May 2017].

McKinsey & Company, 2016. What’s next for China’s boomng Fintech sector?. [Online]
Available at: file:///C:/Users/Yuenyew/Downloads/Whats-next-for-Chinas-booming-fintech-sector.pdf
[Accessed 15 May 2017].

Meng Jing, 2014. Alibaba, lenders team up for SME financing, China: China Daily.

Miao, M. & Jayakar, K., 2016. Mobile payments in Japan, South Korea and China: Cross-border convergence or divergence of business models?. Telecommuncations Policy, 40(2-3), pp. 182-196.

Middle East Insurance Review, 2015. China:New online insurance regulation to take effect from 1 Oct, s.l.: Middle East Insurance Review.

Millennial Disruption Index, 2013. The Millennial Disruption Index. [Online]
Available at: http://ritholtz.com/wp-content/uploads/2015/04/MDI.png
[Accessed 15 May 2017].

Ministry of Finance, 2017. Budget 2017 - An Innovative and Connected Economy. [Online]
Available at: http://www.singaporebudget.gov.sg/budget_2017/budgetspeech/pb.aspx
[Accessed 2 June 2017].

Monetary Authority of Singapore, 2006. Stored Value Facility Guidelines. [Online]
Available at: http://www.mas.gov.sg/~/media/resource/legislation_guidelines/payment_system/payment_act2006/guidelines/Stored%20Value%20Facility%20Guidelines%20final%20version.pdf
[Accessed 2 June 2017].

Monetary Authority of Singapore, 2016. FAQ on Lending based Crowdfunding. [Online]
Available at: http://www.mas.gov.sg/~/media/MAS/Regulations%20and%20Financial%20Stability/Regulations%20Guidance%20and%20Licensing/Securities%20Futures%20and%20Fund%20Management/Regulations%20Guidance%20and%20Licensing/FAQs/FAQs%20on%20Lending%20based%20Crowdfunding.pd
[Accessed 18 May 2017].

Monetary Authority of Singapore, 2016. Fintech Regulatory Sandbox Guidlines , Singapore: Monetary Authority of Singapore.

Monetary Authority of Singapore, 2016. MAS to Improve Access to Crowd-funding for Start-ups and SMEs. [Online]
Available at: http://www.mas.gov.sg/News-and-Publications/Media-Releases/2016/MAS-to-Improve-Access-to-Crowdfunding-for-Startups-and-SMEs.aspx
[Accessed 18 May 2017].

Monetary Authority of Singapore, 2016. New FinTech Office: A One-Stop Platform to Promote Singapore as a FinTech Hub. [Online]
Available at: http://www.mas.gov.sg/news-and-publications/media-releases/2016/new-fintech-office.aspx
[Accessed 18 May 2017].

Monetary Authority of Singapore, 2017. MAS FinTech Regulatory Sandbox. [Online]
Available at: http://www.mas.gov.sg/Singapore-Financial-Centre/Smart-Financial-Centre/FinTech-Regulatory-Sandbox.aspx
[Accessed 18 May 2017].

Monetary Authority of Singapre, 2016. Financial Advisers Act/Financial Advisers Regulations. [Online]
Available at: http://www.mas.gov.sg/regulations-and-financial-stability/regulations-guidance-and-licensing/insurance/insurance-licensing/insurance-brokers.aspx
[Accessed 3 June 2017].

Monetay Authority of Singapore, 2016. Proposed Activity-based Payments Framework and Establishment of a National Payments Council, Singapore: Monetay Authority of Singapore.

Muzellec, L., Ronteau, S. & Lamkin, M., 2015. Two-sided Internet platforms: A business model lifecycle perspective. Industrial Marketing Management, Volume 45, pp. 139-150.

Nicholas, 2015. China Sets the Rules for Internet Finance. [Online]
Available at: http://www.frbsf.org/banking/asia-program/pacific-exchange-blog/china-sets-the-rules-for-internet-finance/
[Accessed 16 May 2017].

Nicole, T., 2017. MAS warns investors on trading binary options on unregulated platforms, Singapore: Channel News Asia.

Nikki, S., 2016. Hong Kong government to impose new rules on money lenders to combat illegal loans, Hong Kong: South China Morning Post.

Norton Rose Fulbright, 2010. A total makeover of the Hong Kong insurance supervisory system?. [Online]
Available at: http://www.nortonrosefulbright.com/knowledge/publications/30529/a-total-makeover-of-the-hong-kong-insurance-supervisory-system
[Accessed 2 June 2016].

Office of the Commissioner of Insurance, 2001. Guidance Note On The Use of Internet for Insurance Activities, Hong Kong: Office of the Commissioner of Insurance.

Office of the Commissioner of Insurance, 2013. Regulatory framework. [Online]
Available at: http://www.oci.gov.hk/framework/index10.html
[Accessed 17 May 2017].

QuanLin, Q., 2016. New China Internet Finance Association draws 400 members. [Online]
Available at: http://www.chinadaily.com.cn/china/2016-03/28/content_24143657.htm
[Accessed 21 May 2017].

Reuters, 2016. China publishes new rules tightening regulation of peer-to-peer lending. [Online]
Available at: http://www.reuters.com/article/china-banks-cbrc-idUSB9N1AS01A
[Accessed 16 May 2017].

Sachin, M. & Lloyd, J., 2016. The Rise of Fintech In China, s.l.: EY and DBS.

Secrities and Futures Commission, 2014. Notice on Potential Regulations Applicable to, and Risks of, Crowd-funding Activities. [Online]
Available at: http://www.sfc.hk/web/EN/files/ER/PDF/Notice%20on%20Crowdfunding.pdf
[Accessed 31 May 2016].

Securities and Futures Commission, 2013. Consultation Paper on the Proposed Amendments to the Professional Investor Regime and the Client Agreement Requirements , Hong Kong: Securities and Futures Commission.

Securities and Futures Commission, 2014. Consultation Conclusions on the Proposed Amendments to the Professional Investor Regime and Further Consultation on the Client Agreement Requirements, Hong Kong: Securities and Futures Commission.

Securities and Futures Commission, 2015. Our Role. [Online]
Available at: http://www.sfc.hk/web/EN/about-the-sfc/our-role/
[Accessed 1 May 2017].

Shen Wei, 2015. Internet lending in China: Status quo, potential risks and regulatory options. Computer Law & Security Review, 31(6), pp. 793-809.

Singapore Statues Online, 2015. Insurance Act Chp 142. [Online]
Available at: http://statutes.agc.gov.sg/aol/search/display/view.w3p;page=0;query=DocId%3A%223bf026f8-05d6-4c03-8df7-d34478f721a4%22%20Status%3Apublished%20Depth%3A0%20%20TransactionTime%3A%2213%2F11%2F2015%22;rec=0
[Accessed 18 May 2017].

Startup Decisions, 2016. Employment Pass Tightening – Singaporeans First. [Online]
Available at: http://www.startupdecisions.com.sg/blog/employment-pass-tightened/
[Accessed 2 June 2017].

Strait Times, 2016. In race to be Asia's fintech hub, Singapore leads Hong Kong, Singapore: Singapore Press Holdings.

Strait Times, 2016. Singapore's media and infocomm authorities IDA and MDA will merge to form IMDA, Singapore: SIngapore Press Holdings.

The Business Times, 2016. Hong Kong central bank flags blockchain money-laundering risk, s.l.: The Business Times.

The Economist, 2016. The allure and the peril of Chinese fintech companies. [Online]
Available at: http://www.economist.com/news/finance-and-economics/21688940-allure-and-peril-chinese-fintech-companies-taking-flight
[Accessed 21 May 2017].

The State Council - The People's Republic of China, 2015. China central bank details rules on online payment. [Online]
Available at: http://english.gov.cn/state_council/ministries/2015/12/29/content_281475262666364.htm
[Accessed 21 May 2017].

TransAsia Lawyers, 2010. MEASURES ON THIRD-PARTY PAYMENT SERVICES INTRODUCED. [Online]
Available at: http://transasialawyers.com/files/newsletters/5-July-2010.pdf
[Accessed 18 May 2017].

Weinland, Don;, 2017. China P2P lenders braced for regulatory crackdown. [Online]
Available at: https://www.ft.com/content/41e706f4-d631-11e6-944b-e7eb37a6aa8e
[Accessed 21 May 2017].

Weiting, L., 2016. HKMA launches fintech innovation hub, China: China Daily Asia.

Xueqing, 2017. P2P lending growth slows amid new compliance rules. [Online]
Available at: http://www.chinadaily.com.cn/business/2017-01/05/content_27866083.htm
[Accessed 21 May 2017].

Yahya, Y., 2016. New licensing regime set for crowdfunding platforms, Sngapore: Singapore Press Holdings.

Yongwoon, S. & Dong-Hee, S., 2016. Analyzing China’s Fintech Industry from the Perspective of Actor–Network Theory. Telecommunication Policy, 40(2-3), pp. 168-181.

Zen, S., 2017. FSDC urges Hong Kong government to set up fintech office, focus on blockchain, China: South China Morning Post.

bottom of page