Beijing, Shanghai and Shenzhen are all under construction: exclusive interview to decipher the “data exchange”

At the press conference of the State Council Information Office on February 28, Tian Yulong, chief engineer and spokesperson of the Ministry of Industry and Information Technology, revealed that it is necessary to actively cultivate the market for data elements and support the construction of data exchanges in Beijing and Shanghai.

Data exchanges in Beijing and Shanghai will be established in 2021. The establishment of the digital exchange means that the data known as the “new power” of the emerging economy can be classified, priced and traded like ordinary commodities.

This year’s National People’s Congress, “data” has also become one of the high-frequency words. A number of representatives discussed the rules, systems and governance supervision of data transactions. Policies related to data are also being actively promoted. On March 21, the official website of the National Development and Reform Commission solicited public opinions on the “data-based system views”. The content involves four aspects: the data property rights system, the data element circulation and transaction system, the data element revenue distribution system, and the data element security governance system.

Beijing, Shanghai and Shenzhen are all under construction: exclusive interview to decipher the "data exchange"

The official website of the National Development and Reform Commission solicits public opinions on the “data-based system view”

The digital exchange is the latest attempt to build a huge data market. What role will its existence play? What new business formats can data transactions spawn in the future? Can personal data be traded? Red Star Capital Bureau interviewed Lang Peipei, chief expert of Beijing International Big Data Exchange, and Lu Yong, Vice President of Shanghai Data Exchange, to discuss the development prospects of data trading in the north, Shanghai, Shenzhen and many other places to deploy data exchanges.

According to estimates by the International Data Corporation (IDC), it is estimated that by 2025, the total amount of data generated in China will reach 48.6ZB, accounting for 27.8% of the world’s total; the contribution rate to the growth of gross domestic product (GDP) will reach an average annual rate of 1.5 to 1.8 percent.

In 2020, the State Council first announced the document on the market-based allocation of factors, “Opinions on Building a More Complete System and Mechanism for Market-based Allocation of Factors” (hereinafter referred to as the “Opinions”). The fifth factor of production”.

Although data is so important, some experts pointed out that the annual growth rate of data volume in the whole society is about 40%, but the growth rate of the amount of data that is actually used is only 5.4%.

Only “flowing” data can be of value. The above-mentioned “Opinions” propose to accelerate the cultivation of the data element market. All regions have also ushered in a boom in the construction of big data trading markets.

The Red Star Capital Bureau noticed that in March and November 2021, the Beijing International Big Data Exchange (hereinafter referred to as the “Beijing Digital Exchange”) and the Shanghai Data Exchange (hereinafter referred to as the “Shanghai Digital Exchange”) were successively established. The functional positioning of the two data exchanges is completely different.

Beijing International Big Data Exchange, established in March 2021, is known by the industry as a landmark institution that opens the 2.0 era of national data exchanges. Beijing Digital Exchange adopts the new transaction paradigm of “available and invisible data, controllable and measurable use”, and has also established the first international data transaction alliance in China, covering all market participants such as transaction subjects, transaction objects, and related service units. More than 100 units have been settled.

“Beijing Digital Exchange is the ‘first new data exchange in China’, and ‘new’ is reflected in innovative trading models, innovative trading technologies, innovative trading rules, innovative trading ecology and innovative application scenarios.” Lang Peipei told Red Star Capital Bureau, Beijing There are two core positions of the digital exchange: a leading data circulation infrastructure in China, and an important international data cross-border service flow hub.

Shanghai Data Exchange is the first to mention the new format of “digital business”, which covers data transaction entities, data compliance consulting, quality assessment, asset assessment, delivery and other fields, and cultivates and regulates new entities. The first batch of signed “digital business” is 100, and the first batch of registered data products is 20.

“First of all, our goal is to locate a national-level exchange with the functions of a quasi-public service agency. We must build a full-chain ecosystem, create a fully digital trading system and innovate institutional rules.” Lu Yong introduced, Shanghai Digital Exchange All 4 characteristics: it should reflect standardized confirmation of rights, unified registration, centralized clearing and flexible delivery.

Following Beijing and Shanghai, Guangdong Province is also promoting the construction of digital exchanges. The recently issued “Key Points for the Reform and Construction of the Digital Government in Guangdong Province in 2022” mentioned that Guangdong will rely on existing trading venues to build a provincial data exchange, build a data trading platform, promote data brokers, “data customs” pilots, and support Shenzhen What does the data exchange look like when the city explores and develops data trading version 2.0?

Breakthrough: focus on confirmation of rights, pricing, mutual trust, market entry, and the five difficulties of supervision

Compared with the establishment of the digital exchanges in Beijing and Shanghai, the first year of China’s big data came earlier. In March 2014, “big data” was first written into the government work report, and the first year of China’s big data started.

In April 2015, the country’s first big data exchange was officially put into operation in Guiyang. In the following two years, the top-level policy of big data development has also been continuously promoted. During this period, local big data exchanges and trading centers ushered in a period of intensive deployment.

Shanghai has echoed this wave of craze. In 2016, Shanghai established a “Data Trading Center”. After a lapse of 5 years, the establishment of a “data exchange”, what is the difference between the two?

“The levels of the two are different. The Shanghai Digital Exchange has a higher, more innovative and pioneering position.” Lu Yong believes that five years of experience, combined with today’s more complete legal framework and policy requirements, will lead to a development path. will be wider.

Lu Yong then explained that the establishment in Pudong is also to implement the requirements of the central document. In July last year, Pudong District officially became a leading area for socialist modernization, and at the same time was given the “legislative power”. Under this background, Pudong is more suitable for the exploration of the construction of the data element market.

Previously, Guizhou, Zhejiang and other places built big data trading centers or exchanges, but the results were not satisfactory. For example, Lu Yong said that in the process of data circulation and transactions, the big problems currently faced include the development of the data element market itself, the development of the multi-level data transaction market, the confirmation of data rights, the pricing of data, the capitalization of data, and so on. There needs to be some breakthrough.

The unclear definition of data ownership, disorderly flow of elements, lack of pricing mechanism, and insufficient security protection have become the key “life gate” for data element transactions. “So this time we focus on the ‘five difficulties’, including difficulty in confirming rights, difficulty in pricing, difficulty in mutual trust, difficulty in entering the market, and difficulty in supervision. We must form new approaches in response to the challenges encountered in the past five years.” Lu Yong said.

For example, in terms of data rights confirmation, Lu Yong introduced the “Shanghai approach”: an enterprise that obtains data in compliance with regulations and performs substantive processing and creative labor on the data can be regarded as having the right to benefit from data.

If the previous data exchanges (centers) in various places were version 1.0, then the newly established digital exchanges in Beijing and Shanghai should be regarded as version 2.0. And the new type of exchange not only focuses on the matching between buyers and sellers of data, but also focuses on the value of elements.

“As for data transactions, everyone is very concerned about issues such as rights confirmation and supervision. In fact, these are the most difficult to break through in the current environment.” Lang Peipei pointed out that Beijing Digital Exchange has all the functions of data registration, and the products listed in the system can be With the “data asset certificate”, I hope to provide a pre-reference for data right confirmation through these attempts.

Lang Peipei believes that traditional exchanges are only a match between supply and demand, but what data exchanges need to do is not simply to match the two parties’ buying and selling, but to establish a set of technology, rules, mechanisms, and processes. A trust mechanism based on data circulation is sound. . Lang Peipei introduced that Beijing Digital Exchange pioneered a new model of “digital trading contracts” based on blockchain. This model expands the value realization scope of data resources, and turns algorithms, computing power and comprehensive service applications into digital assets that can be traded.

“Everyone is not very clear about what links the transaction includes and what the participants in each link should do.” Lang Peipei introduced that the Beijing Digital Exchange has specified a series of rules in terms of access, management, circulation, and industrial chain extension. “Our rules are set up for the circulation mechanism of data transaction elements, and a whole set of transaction process system will be established this year.”

In terms of transaction mode, Beijing Digital Exchange proposes to introduce the technology of blockchain and privacy computing in the way of privacy computing and data “available and invisible”, and replace ownership with the right to use the transaction of data. In this way, the data user obtains the value of the right to use the data through ciphertext calculation, but cannot obtain the ownership of the data.

The entry of Beijing and Shanghai is not driven by “profit”

For exchanges, trading volume is the best indicator of market activity. However, the trading volume announced by the exchanges established in the early days was very limited.

The vision of Guiyang Big Data Exchange at the beginning of its establishment was that the daily trading volume of the exchange would exceed 10 billion yuan in the next 3-5 years. In the following years, the transaction volume target of big data transactions in Guiyang gradually decreased, from “daily transaction volume of 10 billion yuan” to “strive to exceed 100 million yuan throughout the year”. By 2018, the Exchange will no longer announce the transaction volume and transaction volume through the official website and other channels.

The “Big Data White Paper” released by the China Academy of Information and Communications Technology in December 2021 pointed out that starting from 2014, data trading institutions have been built in various places to provide centralized and standardized data trading venues and services… But after more than seven years of exploration, The operation and development of data trading institutions in various places has not achieved the expected results.

Although there have been local failures before, Beijing and Shanghai are still entering the game strongly, mainly due to top-level policy factors.

From the perspective of Beijing’s own development, the digital economy is an important part of creating a “comprehensive demonstration zone for the expansion and opening up of the national service industry” and a “China (Beijing) free trade pilot zone”, and the Beijing Digital Exchange is also implementing the above-mentioned “two zones” Construction key projects.

The “Beijing Action Outline for Promoting the Innovative Development of the Digital Economy (2020-2022)” proposes that by 2022, the development level of Beijing’s digital economy will continue to improve, and the added value of the digital economy will account for 55% of the regional GDP, making Beijing a national A pilot area and demonstration area for the development of the digital economy.

As the largest economic center city in the country, Shanghai also intends to build an “international digital capital”. The “Opinions of the Central Committee of the Communist Party of China and the State Council on Supporting the High-level Reform and Opening-up of Pudong New Area to Build a Leading Area for Socialist Modernization” clearly states that Pudong should build an international data port and data exchange, and promote the definition of data ownership, openness and sharing, transaction circulation, supervision and management. Standard formulation and system construction.

Profitability is not the current goal of the two exchanges. Yin Yong, deputy mayor of Beijing, emphasized at the launch conference of the Beijing Digital Exchange that the Beijing Digital Exchange should innovate its business model, maintain its development, and not be in a hurry to make profits.

Lu Yong also expressed a similar view. “We use ‘quasi-public service agencies’ to empower this market. At present, it is not purely market-oriented operation.” He believes that although many foreign data circulation transactions are market-oriented operations, domestic data has been raised to “” The fifth largest factor of production”, which also means that the country attaches great importance to data, and promotes the market and policy to make the factor market develop faster, and empowering the market and promoting the development of the digital economy are the only things in Shanghai. Exchange focus.

Big data transactions have set off a wave of upsurge in all parts of the country. According to incomplete statistics, more than ten data trading platforms have been established in China, and the initiators are not only the government, but also private enterprises. The current popularity of the “digital economy” will undoubtedly give birth to a wave of establishment of digital exchanges. However, Lu Yong believes that the exploration of data exchanges requires top-level design and technical support, and not every city is suitable for establishment. There are also experts who believe that, considering the cross-regional nature and high efficiency of data transactions, more data transactions may be concentrated in a few head exchanges in the future.

What kind of region is suitable for establishing a digital exchange, Lu Yong mentioned two prerequisites: the level of local economic development, and the concentration of data resources. “The purpose of the digital exchange is to promote the development of the data element market. If a place has these two advantages and is doing digital transformation, the establishment of the digital exchange will be very suitable.”

Birth of new business formats: the birth of data compliance assessors and quality assessors

At present, the Shanghai Digital Exchange has completed the listing of more than 40 data products in two batches, involving various industries and fields such as finance, transportation, and communication.

The first transaction was the data product of State Grid Shanghai Electric Power’s “Enterprise Power Smart Painting”, which was sold to Industrial and Commercial Bank of China. Using these data, ICBC can manage the enterprises it serves from pre-loan, during loan, and post-loan management. “Especially for the loan management of small, medium and micro enterprises, it is more convenient.” Lu Yong introduced that the current application areas are more, or the financial market’s services on the Internet.

“Traditional practices in the financial sector may not be efficient enough. Now that we have third-party data, banks can observe their service objects in more dimensions, which also plays a role in improving their operational efficiency.” Lu Yong said.

Beishu divides products according to industry fields. Lang Peipei mentioned the dimension of “social data area”, such as government affairs, public services, financial technology, transportation, energy meteorology and other fields. There are data custodians and data resources in each field. Providers and data sources to provide data, products and services.

At present, the digital exchanges in Beijing and Shanghai are all targeting enterprises. For the transaction of personal data, the two responsible persons have given certain prerequisites. Lu Yong believes that personal data needs to be supported by a series of policies before it can be better used; Lang Peipei pointed out that transactions need to be considered in “scenarios”, and the premise of the application of “high-value data” in Beijing Digital Exchange is the need for data Compliance and legal authorization.

The establishment of the digital exchange will also give birth to a number of new business formats that were not available before. In November last year, Beijing Big Data Center, China Electronics Technology Standardization Institute, China Academy of Information and Communication and other units collectively settled in the digital economy intermediary service provider of Beijing Digital Exchange. It is understood that intermediary service providers covering data valuation, rating, auditing, custody, etc., as new industries, new formats, and new models spawned by data transactions, are an important part of the data transaction ecosystem.

Lu Yong mentioned the concept of “new ecology of digital business”, that is, new business forms and new models born in the era of digital economy. For example, Lu Yong said that before data products are listed, compliance and quality assessments must be carried out, which brings new business opportunities such as “data compliance assessors” and “data quality assessors”.

Lu Yong also mentioned that “digital brokers”, which act like intermediaries, can help traditional enterprises find data resources more easily and meet their data needs. In addition to data evaluation agencies, Lang Peipei mentioned data-related legal affairs agencies and data audit agencies. The existence of these agencies mainly checks whether data has been used in compliance; there are also custodians or data trust service agencies derived from data trusts, etc. .

Since the beginning of this year, Beishu has recruited data custodians, data brokers, and data service providers from all over the world. “As part of the digital economy infrastructure, data custodians and brokers should have both social credibility, business public welfare, and service capabilities. Strong and relevant business qualifications”, Lang Peipei revealed that the Beijing Digital Exchange has conducted in-depth research on the data custodian and data broker models in the early stage, and recruited them at the beginning of this year.

“At present, there are many formats for data in the market that need to be improved. We also hope that with the development of the industry, there will be more formats and scenarios enriched.” Lang Peipei said.

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