China central bank sets out draft controls over financial infrastructure

China’s central bank issued draft rules on Wednesday on supervising and managing financial infrastructure, in a move it said would push finance groups to better serve the real economy.

China would maintain “absolute control” over infrastructure affecting national financial security, according to the draft regulations which underlined the dominant role of the ruling Communist Party.

All data collected and produced during such operations within Chinese territory must be stored within the country, under the regulations.

Any businesses needing such data overseas must comply with Chinese regulations, the draft added.

It also barred anyone from setting up any form of financial infrastructure without approval.

The rules would cover institutions involved in the clearing and settlement system, trading facilities, important payment systems and other areas of financial infrastructure, the announcement said.

Amid a complex international environment, the rapid development of financial technology and increasing internet security challenges externally, the lack of coordinated supervision over China’s financial infrastructure becomes more prominent, the People’s Bank of China said in a separate explanatory statement.

China’s authorities had approved 26 financial infrastructure institutions before the draft rules came out, according to the central bank.