Ding Chen and Collegues

Informal Finance in China: Risks, Potential and Transformation

Dr Ding Chen, Prof Andrew Johnston and Dr Navajyoti Samanta are involved in an ESRC funded research project which is exploring economic and legal aspects of informal finance in China. The project, which is led by the University of Cambridge, is being carried out by a cross-disciplinary team of lawyers and financial economists at the Universities of Cambridge and Sheffield in the UK, and Hunan and Renmin Universities in China.

The team plans to explore the phenomenon of informal finance in China, identify the risks and potential associated with it, and assess how regulation can best respond to the risks while not sacrificing the innovations and flexibility associated with it, particularly in the context of 'Fintech' (the use of internet technologies to deliver finance).

The project will run from 1st January 2017 to 30th June 2018.

Project acitivities

The team held a conference in Hangzhou, April 2017 on Fintech, participants included provincial regulators, fintech companies (including Alibaba), judges from Zhejiang High Court. Our partners held meetings with regulators in Financial Conduct Authority, Prudential Regulation Authority in July 2017.

Ding Chen was interviewed and quoted by Economist on Rule of Law in China in September.