China’s economy has now entered a stage of high-quality development, with data emerging as a critical driver of economic growth and a key element in modern productivity. In the context of rapid digitalization, public data has become essential for advancing both the digital economy and society. Based on the assetization of public data and the formation of a data finance model, we can foster growth in digital services, infrastructure, and technology, thereby accelerating the development of the digital economy in this new era. This paper proposes a framework for a data finance system built around data and capital, where public data assetization forms the foundation and public data asset operation and monetization serve as its main pillars. The assetization and operational use of public data are gaining momentum as data rights policies and regulatory frameworks advance steadily. In this context, the monetization of public data assets extends the scope and depth of the framework, offering a basis and regulatory reference for the anticipated growth of data finance. Within this framework, this paper delves into the key stakeholders, their behavioral incentives, and incentive alignments within data finance. It also explores potential development paths and stages, ultimately envisioning a shift from urbanization-driven finance to digitalization-driven finance. This paper aims to use data finance as a catalyst to activate local governments’ involvement in building the digital economy and to expand the reach of digital services. This approach seeks to address challenges in digital infrastructure investment, where funds often enter without a clear exit strategy. Additionally, it aims to enhance digital government services and data governance capabilities, supporting the transformation and upgrading of traditional industries. In turn, this transformation is expected to continually generate new industries, business models, and operational modes, thereby contributing to the construction of a robust digital economy.