Regulatory Challenges and Countermeasures of the Innovative Development in Finance-Supported Digital Economy

（Henan Finance University，Zhengzhou 450001，Henan，China）

Abstract：Driven by innovations of digital economy，China has become an important digital economy power in the world. However，the focus of digital economy innovation is mainly on the business application model. There is a certain bias in the degree of technological integration of innovation，the penetration rate of the innovation process and the integration of the three industries is not high，and the continuous support of the financial system is urgently needed. At present ，the overall scale of China's financial support on digital economy innovation is relatively large ；but the scale of single support is small，and it is mainly concentrated in the field of business application models. In the process of digital economy innovation ，as a core element， data has a strong compatibility with equity financing. The particularity of the cost structure is compatible with venture capital. The business expansion model based on the viewership and the special development stage requires a large number of long- term financial support. Because of the strong adaptability of financial support and digital economic innovation ，it has also triggered the disorderly expansion of capital，intensified the prematurity of market，and had the negative impact on small and medium-sized business operators. At the same time，it has also distorted the innovation incentive mechanism and aggravated the monopoly of platforms. The financial supported digital economy innovation brings us with new challenges ，and the regulatory sandbox model should be established with the help of the framework of adaptive supervision. The speed ，direction and intensity of adaptive supervision fits the form，essence and means of the supervision sandbox，and certain experience has been accumulated in the supervision practice at home and abroad. To this end，on the premise of establishing the concept of adaptive supervision，we should，first，establish the branches of the People’s Bank of China as the leading institution in the supervision sandbox ；second， we should expand the scope of subjects for pre-application testing，improve the specific standards for application testing projects， and strengthen the in- and after-event synergy of comprehensive supervision ，build the after-event multi-dimensional evaluation system to establish an open supervision mechanism in which multiple subjects participate together ；and third，we should build a data-centric supervision sandbox through the improvement of pre-event data supervision procedures and the establishment of a data sharing system for in- process testing specific regulatory procedures to deal with the risks brought by financial supported digital economy innovation and development.

Key words：financial support；equity financing；venture capital；digital economy；regulatory sandbox