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From aperture satellite to "Internet finance": Institutionalization of ICTs in China's financial sector since 1991

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  • Wang, Jing

Abstract

China's financial industries started the process of marketization only two decades ago, but by 2017 its financial technology or fin-tech sector had taken half of the global market. The exponential diffusion of information and communication technologies (ICTs) in Chinese financial contexts have generated new organizational structures and socio-political relations that have the capacity to change China's position in the world economy. Drawing upon the sociological concept of institutionalization, this paper examines how the Chinese state has integrated ICT diffusion in its formal policies and its informal rules in China's financial development since 1991. Further, it addresses the political and socio-economic consequences of these developments. Based on the analyses of government documents and sources, trade journals, and statistic data from business databases, this paper divides the Chinese institutionalization of financial technologies into three stages and identifies the primary actors and paradigms for ICT diffusions in each stage. ICT diffusion has been constitutive but also disruptive to the existing financial policies, instrumental to the commercialization of state-owned banks, and has gradually transformed into a set of formal and informal rules accepted by a network of professionals, corporations, and government agencies. The institutionalization of ICT diffusion has engendered the continuous adjustment of financial policies and propelled innovations in China's financial economy.

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  • Wang, Jing, 2018. "From aperture satellite to "Internet finance": Institutionalization of ICTs in China's financial sector since 1991," Telecommunications Policy, Elsevier, vol. 42(7), pages 566-574.
  • Handle: RePEc:eee:telpol:v:42:y:2018:i:7:p:566-574
    DOI: 10.1016/j.telpol.2018.04.004
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    References listed on IDEAS

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    1. Xia, Jun, 2017. "China’s telecommunications evolution, institutions, and policy issues on the eve of 5G: A two-decade retrospect and prospect," Telecommunications Policy, Elsevier, vol. 41(10), pages 931-947.
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    1. Qian Wang & Jinbao Yang & Yung‐ho Chiu & Tai‐Yu Lin, 2020. "The impact of digital finance on financial efficiency," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1225-1236, October.
    2. Cao, Siqing & Lyu, Hanjia & Xu, Xian, 2020. "InsurTech development: Evidence from Chinese media reports," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    3. Bai, Caiquan & Yan, Hong & Yin, Shanggang & Feng, Chen & Wei, Qian, 2021. "Exploring the development trend of internet finance in China: Perspective from club convergence," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    4. Qian Wang & Jinbao Yang & Yung‐ho Chiu & Tai‐Yu Lin, 2023. "Cross‐regional comparative study on digital finance and finance efficiency in China: The eastern and non‐eastern areas," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 68-83, January.
    5. Lee, Chien-Chiang & Tang, Manting & Lee, Chi-Chuan, 2023. "Reaping digital dividends: Digital inclusive finance and high-quality development of enterprises in China," Telecommunications Policy, Elsevier, vol. 47(2).

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