China Proposes Measures to Control Risks Posed by Online Finance, P2P Lending
The Chinese state council said this week that the government will be fast-tracking the development of a long-term mechanism for internet finance. The statement came after a meeting of the state cabinet’s Financial Stability and Development Commission (FSDC) chaired by vice premier Liu He where the cabinet assured that online lending risks were under control.
Prior to this, a central working group had already proposed 10 new measures to curb risks caused by the troubled peer-to-peer (P2P) lending sector to protect social and financial stability. Around 243 online lending platforms had already closed down since June, leading people who have lost their life savings to P2P platforms to carry out protests which the authorities quickly snuffed out.