China’s central bank published draft rules on supervision and management of financial infrastructure on Wednesday, in a move it said would push financial groups to better serve the real economy.
China will maintain “absolute control” over infrastructures that affect national financial security, according to the draft regulations, which stress the dominant role of the ruling Communist Party.
All data collected and produced during such operations on Chinese territory must be stored in the country, according to the regulations.
Companies that need such data abroad must comply with Chinese regulations, the project adds.
It would also prohibit anyone from creating any type of financial infrastructure without authorization.
The rules would cover institutions involved in the clearing and settlement system, trading facilities, major payment systems and other areas of financial infrastructure, according to the announcement.
Amid a complex international environment, the rapid development of financial technology and increasing Internet security challenges abroad, the lack of coordinated supervision over China’s financial infrastructure becomes more prominent, the People’s Bank of China said. China in another explanatory statement.
Chinese authorities had approved 26 financial infrastructure institutions before the draft rules came out, according to the central bank.