THE government will continue to resolve financial risks in online lending and the use of shares as collateral for financing activities to protect market stability, the State Council said yesterday.

The government will speed up the development of a long-term regulatory mechanism for Internet finance, the State Council said in a post following a meeting of the Financial Stability and Development Commission (FSDC) chaired by Vice Premier Liu He, adding that risks in online lending were under control.

The meeting comes a few days after a Central Government work group tasked with cracking down on online finance risks proposed 10 new measures to curb risks caused by the troubled peer-to-peer (P2P) lending sector to protect social and financial stability.

At least 243 online lending platforms have gone bust since June.

In the statement yesterday, the State Council committee also said China will further deepen reforms of its capital markets to better serve the real economy.

That includes measures to improve the quality of listed companies, reform stock issuance system, and broaden long-term and stable funding sources for the country’s capital markets, the State council said in the statement.(SD-Agencies)