An area potentially of great interest to investors is data collection and sharing, which is at the heart of the digital economy.
As part of the government’s effort to build up the digital infrastructure, it’s possible that, as suggested by some industry experts, it may try to lead a data base which encompasses data from various government bodies (e.g., the central bank, the two main financial industry regulators, the Administration of Industry and Commerce, the tax department, Customs and the Court) and leading industry players, i.e., an enlarged version of the “social credit score” system that the government has set up.
In addition, by granting all players access to segments of the data base, the government could help develop the digital economy. From this perspective, it’s similar to the government’s moves in the past to centralize the telecom network and the gas trunk pipeline network.
Leveling the play field in data access could be a great boon to new entrants and smaller players but negative to the existing leading players that currently enjoy a big data advantage, depending on how access to such a data base is regulated and priced.
