Once-iconic market region transformed into emerging hub for fintech innovation

The once-iconic wholesale market zone near Beijing Zoo in Xicheng district has become a new landmark for the city's financial and high-tech industries, local officials said.

Ma Hongping, deputy director of the administrative committee at Beijing Xicheng Park, said the first batch of renovated buildings in the zone has made 110,000 square meters of office space available for fintech companies since 2019.

This year, modern buildings covering 100,000 sq m will be reopened, housing 20 key fintech institutions.

At present, the number of the fintech companies in the zone exceeds 100, with combined registered capital of more than 70 billion yuan ($10.19 billion). The region has formed an industrial chain of supervision, channels, operations, third-party payment, and security in the fintech field.

Built in the mid-1980s, the Beijing Zoo wholesale market was labeled as a "paradise" for young shoppers who wanted to look fashionable on a budget. It used to attract 100,000 customers on a daily basis.

The malls at the market have been shut down one by one since 2015, when the capital started phasing out nonessential businesses to reduce traffic congestion and population, as well as to make ways for high-end companies.

Cai Qi, Party secretary of Beijing, said the city is continuing its supply-side structural reform, developing modern financial sectors that match the status of the capital and striving to be at the forefront of the country in financial reform and development.

Beijing has unique advantages in developing the financial industry, and will continue to provide greater support to build financial infrastructure, such as payment clearing, credit rating, registration, deposit and insurance, Cai added.

"Beijing will also further improve its services and management, strengthen communication and create a better environment to promote the high-quality development of the financial industry," he said.

The effort to turn the wholesale market into a national fintech center is in line with the city's goal to become a leader in the global financial technology regulatory system with solid industrial bases, standards and high-level professionals.

To date, the zone has accelerated the construction of fintech laboratories and research institutes, setting up a fund and planning to complete the first round of fundraising in the first quarter of 2020.

Recently, the People's Bank of China announced it would launch a Chinese version of the so-called regulatory sandbox in the zone, an experiment that allows pioneering solutions and technologies to be deployed in a live, controlled setting.

In general, the regulatory sandbox is to put fintech-related innovation into a mechanism, so all financial transactions are carried out in compliance with laws and regulations. Such an initiative will attract more projects to gather in the zone, Ma said.

Li Yunwei, an official from Beijing Exhibition Hall, said reconstruction of some main buildings was completed last year, such as Wantong financial center, Beijing mining financial technology building and a new power fintech center.

"This year, we will continue to beautify roads and their surrounding environment and gradually renovate water, electricity and heating networks in the region," Li said.

This year, Xicheng district will transform and upgrade commercial buildings in the area and provide more industrial space for the high-quality growth of the local economy.

wangjinhui@chinadaily.com.cn