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在线翻译:
szdaily -> Shenzhen
New rules aim to clean up P2P lending
    2016-August-26  08:53    Shenzhen Daily

    INDUSTRY insiders estimate that most P2P lending companies will suspend or close their lending businesses under the tightened rules announced Wednesday to clean up the lending sector, which has been dogged by scandals and fraud due to loose oversight.

    According to the rules jointly issued by the China Banking Regulatory Commission, the Ministry of Public Security, the Cyberspace Administration of China and the Ministry of Industry and Information Technology, P2P platforms will not be able to take public deposits, nor create asset pools, nor provide any forms of guarantee for lenders.

    The rules set a ceiling of 200,000 yuan (US$30,020) for an investor to invest into the projects provided by a lending company and a ceiling of 1 million yuan from the same investor on to different lending platforms. For a corporate lender, the ceiling is 1 million yuan to one lending platform and 5 million yuan to different lending platforms.

    “This ceiling is too low and will cause lending companies to suspend their businesses,” said Huang Shijiao, co-founder and CEO of touzhijia.com.

    By the end of July, 309 lending companies were operating in Shenzhen. Nine companies were closed in July for being unable to pay back loans and interest to investors.

    Under the new rules, P2P firms will also not be allowed to sell wealth management products, nor issue asset-backed securities, and firms will have to use third-party banks as custodians for their investors’ funds.

    “The regulatory authorities want lending companies to serve micro enterprises that are neglected by banks. It is risky for lending companies to get involved in big loans, because they raised money from smaller investors. In the following transitional period, most lending companies will be required to rectify their operations. As the firms will have to use third-party banks as custodians for their investors’ funds, some of the lending companies that fail to meet the standards and requirements of banks will be eliminated,” said Tian Weiying, CEO of p2peye.com.

    The new regulation is aimed to clean up China’s rapidly growing but loosely regulated online financial sector, which is causing growing financial risks and potential social unrest.

    Bao’an District People’s Court alone heard 32 illegal fundraising cases in the first half of the year, 10 times the number in 2015. Some P2P lending platforms have illegally raised funds by offering high interest returns for investing in certain projects, some of which didn’t even exist.

    The Shenzhen Municipal Government recently printed and published a reward system for reporting illegal fundraising. Whistleblowers who provide clues that lead to a conviction for the crime will be awarded 50,000 to 200,000 yuan.

    Shenzhen’s financial service office has said that it is developing a reporting hotline system and will announce the hotline to the public upon completion.

    The public now can report illegal fundraising to 0755-8446-8544, the hotline of the city’s economic crime investigation department, and district bureaus of the department.

    (Han Ximin)

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Shenzhen Daily E-mail:szdaily@szszd.com.cn