Where we are in China's fintech regulatory roadmap?

In our previous report on China's fintech regulatory framework, we envisioned a regulatory roadmap around policy objectives and potential regulatory measures (Figure 2). While most regulatory developments so far have been focused on Ant's business model, we expect the measures to bring headwinds to other fintech companies and the online lending industry. Overall, we believe the overall regulatory direction could bring more discipline to internet companies' financial-service offerings and contain their monopoly power, which in turn should lead to a more favourable operating environment for banks, in our view. We summarise below the regulatory developments so far and what to expect next.