The UK’s Financial Conduct Authority (FCA) has signed a cooperation agreement with the People's Bank of China (PBOC) to promote innovation in the financial technology space in the two markets.
The agreement paves way for the establishment of a UK-China fintech Bridge that aims to boost regulatory cooperation and reciprocal market access for UK as well as Chinese fintech startups.
The agreement will allow the two parties to exchange information about financial services innovations in their respective markets, including emerging market trends, regulatory issues pertaining to fintech innovation, and information on organisations that spearhead efforts to promote fintech innovation.
FCA CEO Andrew Bailey said: “The Co-operation Agreement will allow us to share information about financial services innovations in our respective markets, including emerging trends and regulatory issues.We hope that by strengthening links between the regulators, barriers to entry will be reduced and innovation encouraged in both countries’ financial services sectors.
“We hope that by strengthening links between the regulators, barriers to entry will be reduced and innovation encouraged in both countries’ financial services sectors.”
In May 2016, Britain and Singapore launched the first fintech bridge to allow fintech firms and investors in the two countries to access each others' markets. In July 2016, UK also formed a fintech bridge with South Korea.