The Dream Factory of China

Qianhai has been effective in financial supervision and risk control since a big-data system, dubbed the “Eagle Eye System,” was jointly established by the Authority of Qianhai and the National Computer Network Emergency Response Technical Team (CNCERT) to monitor and control risks in the financial sector in Qianhai.

The system contains big data from multiple channels, such as CNCERT and public data on the Internet as well as information on corporate social credit. Relying on national-level financial supervision technologies, a risk index model has been established to comprehensively analyze corporate risks through six first-level risk indicators and 122 second-level risk indicators. The first-level risk indicators include business risk, public opinion risk, judicial risk, operational risk, associated risk and scale risk.

In September 2017, a P2P platform was caught with suspicion of using its investors’ money to pay off its own debts that amounted to more than 20 billion yuan (US$ 283.4 million) as it was detected by the system having offered an unusually high return rate to its investors.

Currently, the system is capable of conducting cross-border, cross-industry, cross-regional, penetrating and real-time public opinion monitoring. It can also identify illegal advertisements and detect the possibility of risk expansion by conducting horizontal comparisons.

The cross-border monitoring feature can identify the location of servers deployed by Qianhai-registered companies to track the operation status of their overseas financial platforms.

The cross-industry monitoring feature of the system has helped the authority identify that the free trade area is home to more than 58,000 non-financial enterprises that are engaged in financial businesses.

The Qianhai authority has also helped Qianhai-registered companies that had problems finding business venues when they expanded their business to other parts of the country find ideal locations for their businesses with the help of the system’s cross-regional monitoring feature.