BEIJING — China's central bank said on May 20 that it has signed a memorandum of understanding (MoU) with the State Administration for Market Regulation on data sharing and cooperation to enhance the regular flow and integrated use of data across regions and departments.

The move aims to lay a solid data foundation for establishing a modern central bank system, promoting financial digitalization and improving the business environment, the People's Bank of China (PBOC) said in a statement on its website.

The central bank expects the MoU to boost information sharing between the financial sector and areas related to people's livelihood and enhance the effective integration and in-depth use of data. It also aims to improve financial services for small firms, targeted poverty alleviation and social security as well as solve financing challenges.

The PBOC will push ahead with high-quality development of financial services by further exploring data value, unlocking data potential and advancing data empowerment in multiple ways in accordance with relevant laws and regulations and on the premise of data security, the statement said.