China's state-run data exchange located in Shenzhen has officially kicked off. Companies are now allowed to buy and sell data like regular commodities as the country is looking for more ways to "build a data trading market to boost its digital economy.
Shenzhen Data Center was Launched in December and Facilitated 415 Trade Deals with $150 Million Trading Volume
The Shenzhen Data Exchange was started last December and was responsible for facilitating 415 trade deals with a $150 million trading volume during the trial period. The trading officially began last Thursday.
According to the story by SCMP, a total of 484 companies were registered with the exchange. This includes 98 data providers, 295 current and prospective data buyers, and 91 data brokers per exchange.
China is Trying to Apply Commercial Rules to Create a Market for Data
The state-run Southern Power Grid of China has been selling credit data from companies based on electricity use and bank clients and will be listing the data for sale. The data will be listed as the exchange will allow wider training.
China is also trying to create a market for data by applying commercial rules. Beijing regards this decision as a new production factor placed in the same category as capital, land, and human labor.
Guangzhou Also Has Its Own Data Exchange Which was Opened in September
In August, over 40 data exchanges are being planned or established, as a State Information Center published an article in September. Last December, Shanghai launched its own data exchange, while Guangzhou, Shenzhen's neighbor, launched its own exchange in September, as detailed by The China Project.
Guangzhou's own exchange has a trading volume that surpassed almost $30 million earlier in November. The experiments continue despite China still lacking an adequate legal framework capable of resolving issues regarding data trading, explained by experts as including the issue of data ownership.
China's Development and Reform Commission's He Lifang Listed the Lack of Basic Governance Framework When It Comes to Data Production
During the earlier report, an official at China's Development and Reform Commission, He Lifang, listed the lack of a basic governance framework regarding data production. It was noted as one of the largest hindrances regarding China's digital economy development.
Shenzhen Data Exchange's chairman, Li Hongguang, also noted in an interview with a local media outlet that data trading faces different problems, like the lack of high-quality data and a profit distribution mechanism.
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Shenzhen Data Exchange Aims to Achieve a Trading Volume of $1.4 Million in 2025
Due to the need for high-quality data, businesses are left with a wait-and-see approach regarding the data. Despite access to data, if most of it is inaccurate, companies will not be able to use most of the data to their advantage.
However, Li states that he remains confident that the strong digital economy of Shenzhen will help give the city an advantage compared to other cities. The Shenzhen Data Exchange aims to achieve a trading volume of $1.4 million in 2025 and contributes almost $700K to the country's economy.
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Written by Urian B.
