China cabinet to curb risks in online finance, share-backed loans to protect stability

Source:Reuters-Global Times Published: 2018/8/27 17:53:40

China 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, China's cabinet, said on Monday.

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

The meeting also comes 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, in order to protect social and financial stability.

At least 243 online lending platforms have gone bust since June, according to media reports.

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

Those reforms will include 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.

Posted in: ECONOMY,COMPANIES

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