Chinese authorities have stepped up efforts to control online lending risks and to protect the legitimate rights of lenders.?
Some online lending platforms have encountered rising risks, as such, authorities have come up with measures to curb illegal fund transfers, prevent owners from running away and stabilize financial markets, according to a recent meeting held by the Internet Financial Risk Special Rectification Work Leading Group Office, the Xinhua News Agency reported on Sunday. Authorities must build up channels for lenders to safeguard their rights, and online lending platforms should establish communication mechanisms and enhance transparency within their operations, according to the meeting.?
Local governments also need to set up explanatory policies to respond to public inquiries, the meeting noted.?
Complaints arose in China after some online peer-to-peer (P2P) lending platforms began going bankrupt a few months ago, with their investors bearing significant losses.
In July, 113 P2P platforms in major cities including Beijing, Shanghai and those in South China's Guangdong Province halted their operations, industry information site wdzj.com said in a report on Friday. As of the end of July, 1,645 P2P platforms were operating normally, a decrease of 11.7 percent compared to the number at the end of June.?
Online lending platforms are also urged to draft liquidation and payment plans in line with laws and regulations, and the authorities will step up crackdowns on malicious evasions of debts and will include those companies committing such acts onto China's social credit system, according to the meeting.
