China's Experience in Digital Financial Inclusion [1] 1. Background Financial inclusion is the next step in the evolution of financial systems and has played a key role in the development of China's finance. Before 1978, China's macro economy was primarily regulated through fiscal policies, first establishing a modern banking system in 1985 with the creation of the People's Bank of China — China's central bank — along with commercial banks. Later, in 1991, the Shanghai Stock Exchange marked the emergence of capital markets in China. And more recently, China has been progressing towards financial inclusion; in 2007, the country established...