China's financial sector rides digital wave with new action plan

China will steadfastly advance the digital transformation of its financial institutions and accelerate the construction of digital finance infrastructure, according to a recent action plan.

The plan, issued by state organs including the People's Bank of China and the National Development and Reform Commission, envisions that by the end of 2027, the country will have established a financial system highly aligned with the growth of the digital economy.

Financial institutions will significantly enhance their digital management capabilities, while digital financial products and services will improve in adaptability and inclusiveness to support major strategies, key economic sectors and weak links in the economy, according to the plan.

To achieve these goals, the country will encourage cooperation between financial and sci-tech departments within financial institutions to develop demand-driven digital technologies.

A digital public service platform will be established to provide technological support for the digital transformation of financial institutions in the securities and futures sectors, per the plan.

Qualified financial institutions will be supported in developing green, smart financial-data centers to ensure efficient data storage and utilization. An optimized and reliable network will also be established to enhance the robustness and service capability of the financial internet.

The country will also accelerate the regulated use of cloud computing and artificial intelligence to provide accurate and efficient support for the digital transformation of the financial sector, according to the plan.

Digital finance is one of China's five key pillars to boost high-quality financial development, along with sci-tech finance, green finance, inclusive finance and elderly-care finance.