Hello fintech friends,

Welcome to the latest of This Week in Fintech - China Edition! This week brings a mix of regulatory updates, investment news, and exciting product launches. From PwC’s record fine, Binance's founder being permanently banned to China's expanding economic openness, there's plenty to explore. Enjoy your read! 

Feel free to send any feedback to me: ning@thisweekinfintech.com. 

-Ning

Chart of the Week

The number of Chinese startups founded in recent years has plummeted. According to FT, Chinese entrepreneurs are hesitant to launch new ventures due to the weakening economy, strict government regulations, and increasingly unfavorable terms offered by venture capitalists, particularly state-owned ones.

However, is this the entire story 🤔 ? Share your thoughts in the comments!

Licensing & Regulations 

• China hit PwC with a record fine of 441mn Yuan ($62mn) and a 6 months business suspension over Evergrande Group audit. And this is only for PwC China Mainland. The broader implications of this action for PwC HK remain uncertain.
• Binance founder Changpeng Zhao has been permanently barred from managing the exchange.
• China introduced stricter rules for financial institutions involved in criminal activities. The revised rules set deadlines for reporting criminal activity and require financial institutions to improve their case management processes and hold individuals accountable.
• China is further opening its economy to foreign investment by fully lifting restrictions on foreign investment in the manufacturing sector and relaxing restrictions in the healthcare sector. These changes are part of efforts to revitalize China's economy.
• China is considering mortgage rate cuts to boost the economy and ease pressure on banks. The government is considering two-step reductions totaling $5.3 trillion to lower borrowing costs for millions of homeowners.
• Duxiaoman (度小满), formerly known as Baidu Finance, was fined 1.2 million yuan for financial reporting violations.

Product & Partnership Launches

• Alibaba.com and Mastercard launched a U.S. co-branded business credit card powered by Cardless.
• UK fintech Unlimit teams up with Shoplazza, a leading Chinese e-commerce technology company, to facilitate cross-border transactions
• Wechat Pay launched palm scan payment at Galaxy Macau, marking its first expansion beyond mainland China.

Financing, Investment & Acquisition 

• JD.com's fintech arm is acquiring Home Credit, China's first foreign-owned consumer finance company.

Other News

• Ant Group saw a 300% rise in international mobile payment users in China. 

Interesting Read

• Fake Shipments, Fast Cash: Trade Finance Fraud on the Rise
• China’s deflation crisis puts markets at risk
• Leveraging Fintech to Enhance Wealth-Management Inclusion in China

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