The Chinese city of Guangzhou has introduced a sandbox program in an attempt to boost local fintech innovations, joining Beijing, Shanghai and neighboring Shenzhen in doing so, reports the South China Morning Post. The program allows stock exchanges, alongside securities and futures firms to test out new tech initiatives, according to a plan revealed by local authorities.
The plan is aimed at building a “prudent and tolerant” regulatory environment, and facilitating the “digitization of the capital market,” according to a notice published by the Guangzhou Municipal Local Financial Supervision and Administration. The project has received the blessing of the China Securities Regulatory Commission (CSRC), officials said.
Guangzhou’s move is part of a rising trend in China that has seen local governments and licensed financial institutions pushing the use of fintech, after Beijing rooted out businesses that it deemed harmful, such as peer-to-peer lending and crypto exchanges.