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Legal Governance on Fintech Risks: Effects and Lessons from China

Published online by Cambridge University Press:  12 August 2020

Wuhan University and Fudan University
Duoqi XU
Wuhan University and Fudan University


Fintech risks have a special type of structure and formation mechanism; regular updates and a complete financial legal system are needed to implement an effective legal governance. China’s fintech development is leading the world, but its lagging legal development does not match its rank in the field. Due to the difficult co-ordination of regulatory goals, unclear allocation of regulatory power, insufficient risk identification, and incomplete regulation tools, China’s legal governance on fintech risks has been swinging between the paths of suppressive, indulging, and adaptive regulation. It is urgently necessary to follow the fintech-risk law and fully tap into the local resources and explore the intervening path with more proactivity, foresight, and refined characteristics, through specification of the legal status and governing power of the intervening entity, the institutional basis and legal effect of interventional means, and the governing key and constitutional rules of intervening objects, to establish a legal-governance system on fintech risks that is innovation-friendly, regulatorily effective, and safe at the bottom line, fully covering the whole process.

Legal Risk Society in East Asia
© Cambridge University Press and KoGuan Law School, Shanghai Jiao Tong University 2020

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This paper is the staged result of the Chinese National Social Science Fund Project, “Research on the Major Theoretical and Practical Issues of China’s Internet Financial Market Access and Supervision Legal System” (Grant No. 16BFX98) and the Ministry of Education Youth Foundation Project on Humanity and Social Science Research “Research on the Supervision Response to the Fintech Applications from the Perspective of Risks Prevention” (grant No. 18YJC820083) and supported by the Fundamental Research Funds for the Central Universities.


Associate Professor of Law at Wuhan University and Deputy Director of Wuhan University Institute of Cyberspace Governance. He has research interests on financial regulation and company law.


Professor of Fudan Law School. Her research interests are on fintech law, data protection, and tax law. Please direct all correspondence to Duoqi Xu, Room 422, Leo KoGuan law building, 2005 Song Hu Road, Xin Jiang Wan Campus, The authors are very grateful for the proofreading of the paper by PhD candidate Firoz Ehsan at Shanghai Jiao Tong University and Tang Feng at Wuhan University.


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