(Yicai Global) Dec. 19 -- Chinese tech stalwart Tencent Holdings Ltd. [HKG:0700] will work with the Shenzhen Municipal Government Financial Services Office to develop a regulatory platform to maintain the financial security of local transactions.

The pair penned a deal at the 2017 China Shenzhen Fintech Summit today, Tencent Tech reported. The regulatory platform will set up a supervision system combining monitoring and analysis to classify and prevent fraud, money laundering and credit card theft.

Technological development is a double-edged sword for financial innovation, Ding Ke, senior vice president of Tencent, said at a signing ceremony for the deal. On one hand, it promotes the efficiency and quality of inclusive finance, but on the other, it improves the capabilities of black industries, those which benefit from computer viruses, he added.

Tencent's headquarters are based in Shenzhen, which is an important Chinese financial hub. The city's financial assets were worth CNY12.7 trillion (USD1.92 trillion) last year, ranking it third in the country. It also ranked 20th on Z/Yen Group's latest list of global financial centers. Shanghai and Beijing were the only mainland cities ranked higher.

In future, the company will look to cooperate with financial departments across the country to ensure the sound and orderly development of inclusive financial services, Ding added.