The Shanghai Data Exchange was established on the 25th in Pudong New Area, Shanghai. On its first day, 20 data products were listed, covering eight major categories including finance, transportation, and communications, taking a crucial step towards building Shanghai as an "International Digital Capital." The first batch of 100 enterprises signing up with the exchange includes data trading entities such as State Grid Shanghai Electric Power, law firms like Lijian Law Firm, accounting firms like PricewaterhouseCoopers, delivery-oriented companies like Fusu Technology and Youke Digital.
Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (Frost & Sullivan, abbreviated as: F&S), said in an interview with Xinhua News Agency that the establishment of the Shanghai Data Exchange plays an important role in eliminating industry pain points and promoting sustainable development by standardizing data transactions while strengthening supervision and enhancing data security.
Xinhua News Agency
As an important measure for China to promote the circulation of data elements, unlock digital dividends, and boost the development of the digital economy, the Shanghai Data Exchange was established on the 25th in Pudong New Area, Shanghai. On its first day, 20 data products were listed, covering eight major categories including finance, transportation, and communications, taking a crucial step towards building Shanghai into an 'International Digital Capital'.
"Trade without scenarios," here are the five highlights of the exchange
On the first day of its establishment, ICBC Shanghai Branch reached a transaction with State Grid Shanghai Electric Power, leveraging the latter's energy data to provide innovative financial products and services; DataBank Technology, an industrial big data service provider, and JiuKun Investment completed the first data transaction in the field of quantitative asset management.
The reporter saw on the screen of the data product trading quotes at the Shanghai Data Exchange that the information was listed separately, including product name, supplier name, listing code, product type, data product registration certificate, data product manual, compliance manual, data quality assessment, and other details.
The Inauguration Ceremony of the Shanghai Data Exchange and the Venue of the 2021 Shanghai Global Digital Commerce Conference
With the pace of the era shifting from informatization to dataization, data flow is becoming a key carrier for activating human flow, logistics, technology flow, and capital flow. Data will also transform from data resources to data elements, then to data assets, and finally to data capital.
In response to key common challenges in data circulation such as rights confirmation, pricing, mutual trust, entry, and regulation, the newly established Digital Exchange has formed five innovative arrangements: First, it has released a digital commerce system, completely constructing a new 'digital commerce' business format. Second, it has issued supporting systems for data transactions, establishing the basic principle of 'no listing without compliance, no transaction without a scenario'. Third, it has released a fully digitalized data trading system that ensures full-time listing, global transactions, and full-process traceability for data transactions. Fourth, it has issued data product registration certificates, achieving one number, one code, which can be registered, counted, and surveyed. Fifth, it has issued data product manuals, making data readable in the form of manuals, transforming abstract data into tangible products.
Zhang Qi, Chairman of the Shanghai Data Exchange, said that in order to better 'escort' data trading, on the day of its establishment, the Shanghai First Data Trading Expert Committee was formed, consisting of 31 experts in fields such as legal compliance, financial transactions, the data industry, and data security. It will provide consulting opinions and professional guidance for data circulation and trading, making safety, standardization, and orderliness key characteristics of the Shanghai Data Exchange.
"Digital Commerce" Releases New Industrial Opportunities
Data, as an important factor of production, is a new engine driving economic development, quality transformation, efficiency improvement, and innovation. Currently, there are over 1,000 core big data enterprises in Shanghai, with more than 5,000 public datasets opened up. The peak daily traffic of commercial data has reached 100 million records. A large number of landmark and demonstrative applications have been implemented and promoted, effectively driving the high-quality development of the economy and society.
Huang Lihua, Executive Deputy Director of the National Engineering Laboratory for Big Data Circulation and Transaction Technology, stated that 'data merchants' refer to economic entities that take data as the main object or primary raw material for business activities. Releasing the 'three types of value' (discoverers, value enablers, connectors, and service providers) from data elements is the mission of 'data merchants'.
Awarding Ceremony of the First Transaction Commemorative Certificate of Shanghai Data Exchange
Among the first batch of 100 enterprises signing with the data exchange market, there are data trading entities such as State Grid Shanghai Electric Power, law firms like Lianhe Law Firm, accounting firms like PricewaterhouseCoopers, and delivery-oriented enterprises like Fosun Technology and Youke Digital.
Shen Xin, President of Shouku Technology, stated that the establishment of exchanges has opened a green channel for enterprises that value data compliance, encouraging them to invest in original content. This is a prerequisite for the healthy development of China's digital exchange market in the future and also holds significant importance for the construction of the new 'digital commerce' business model.
"In the past, the company's data mainly served the municipal government for 'one network for handling affairs' and 'one network for unified management', which was of a public welfare nature. This is my first time participating in data trading, mainly because I value the government's platform, legality and compliance, as well as institutional innovation." A relevant person from State Grid Shanghai Electric Power Company said that data is a treasure trove, and they hope that through the exchange, more people can see the role of power data. In the future, data products may be designed for energy conservation and emission reduction, providing references for carbon credits, energy conservation and emission reduction, etc.
Ji Xinhua, Chairman of Ucloud, the first cloud computing listed company on the A-share market, said that the exchange has promoted orderly and standardized data trading by establishing basic systems such as data rights confirmation, registration, and trading, unlocking opportunities for data-related industries. Ucloud will rely on its years of accumulation in data security circulation, development, and utilization, and work with partners in the data industry ecosystem to stimulate data value and accelerate digital transformation.
Efficient circulation is essential, as well as ensuring safety
Dr. Wang Xin, Global Partner at Frost & Sullivan and President of the Greater China Region, stated that the domestic data trading industry is still in its early stages of development, with imperfect industry norms. Data trading may face challenges such as unclear ownership definitions and inadequate security protection. The establishment of the Shanghai Data Exchange plays an important role in standardizing data trading while strengthening supervision and enhancing data security, aiming to eliminate industry pain points and promote sustainable industry development.
"There are certain differences between data trading and securities trading. Data itself is replicable and has different values for different users and use cases," said Jiang Xiangyu, a partner at Collaborative Law Firm. In order to regulate trading behavior and form a healthy and orderly market, data products need to undergo compliance assessments before entering the market. This specifically includes the basic information of the data trading entity, especially whether there are any illegal or irregular cases in the data field, the legality of the data source, whether it contains data that is prohibited from trading or not suitable for trading at present, data usage conditions and constraints (such as use scenarios, qualification requirements for data users, usage restrictions, whether resale is allowed, etc.), and the enterprise's risk control capabilities and measures for data circulation.
On the 25th, the Shanghai Arbitration Commission and the Shanghai International Economic and Trade Arbitration Commission established data arbitration centers in Pudong respectively, providing better institutional guarantees for the safe and orderly flow of data transactions.
It is reported that while constructing the 'exchange + base + enterprise agglomeration' digital industry ecosystem model, Pudong New Area will also build a data element industrial agglomeration area to comprehensively promote the prosperous development of the data element market and ensure the safe and orderly flow and trading of data.
This also means that Shanghai will provide answers to the global urban 'must-answer question' of data circulation and trading through more innovation. (Reporters: Pan Qing, Gong Wen, Sun Qing)
Frost & Sullivan Insight & Extended Readings
On November 25th, the Shanghai Data Exchange was officially established. In this regard, Dr. Wang Xin, Global Partner at Frost & Sullivan and President of Greater China, stated:
The Shanghai Data Exchange will be open to the global community, conducting comprehensive big data transactions. It will provide a venue and facilities for centralized data trading and organize and supervise data transactions. This will contribute to the construction of the Shanghai data element market, improve the multi-level data trading and circulation mechanism, form a good data trading ecosystem, and further strengthen Shanghai's leading position in the field of national data circulation and trading.
Currently, the domestic third-party data trading industry is still in its early stages of development. Industry norms are not yet complete, and issues such as unclear data ownership, inadequate data security protection, insufficient standardization of data transactions, and difficulty in eliminating gray markets have become major obstacles to industry growth.We believe that the establishment of the Shanghai Data Exchange will explore the creation of a new type of comprehensive big data trading mechanism with innovative classification and stratification. It will accelerate the advancement of data openness and sharing, as well as the establishment and improvement of data management mechanisms. While realizing standardized data transactions, it will strengthen transaction supervision and enhance data security. This plays an important role in eliminating industry pain points, exploring the establishment of a national-level data trading center, and promoting the rapid, healthy, and sustainable development of the industry.
We believe that the establishment of the Shanghai Data Exchange will contribute to the innovation of new big data trading mechanisms, accelerate data integration and sharing, and promote fair, orderly, secure, controllable, and fully traceable data transactions.At the same time, this helps Shanghai build a high-quality public data openness brand, comprehensively construct the city's digital foundation, activate material flow, technology flow, and capital flow through data streams, create high-level industrial chains, supply chains, and value chains, continuously improve the city's data capability level, build a high-level and convenient data circulation system, enhance the global allocation capacity of data elements, and achieve the goal of becoming an 'International Digital Capital'.
*This article is reprinted from Xinhua News Agency, with reporters Pan Qing, Gong Wen, and Sun Qing. The original article was titled 'The Shanghai Data Exchange Debuts “Data Merchants” New Business Model: Do You Have “Data”?'
