CHINA KNOWLEDGE

China Knowledge is in the business of providing business solutions and products on China. Within the Group it has financial terminal, publishing, newswires, research, multimedia production and a wide range of consulting services offer to foreign businesses seeking opportunities in China.
Policy · Fintech
P2P lending platforms ordered to prepare information disclosures for new monitoring system
CKN
2019/04/18 03:27:25
3,414
p2p lending; national monitoring system

Apr 18, 2019 (China Knowledge) - Chinese regulators have commenced preparations for a new pilot program to get the country’s remaining peer-to-peer (P2P) lending platform registered in a new national monitoring system.

The new monitoring system comes as part of the country’s response to regulate its online lending industry which has been fraught with abuses and frauds after lax supervision resulted in multiple scandals in the industry and the collapse of hundreds of platforms.

To date, more than two-thirds of the country’s P2P platforms have closed down.

The new monitoring system will consist of two databases, an information disclosure database and a real-time transaction monitoring database with regulators already ordering qualified P2P lenders to ready their data for submission.

Large P2P platforms with loan balances of more than RMB 5 billion have to be registered with the information disclosure database by end May while platforms with less than RMB 5 billion of loan balance required to register by June.

Regulators aim to start registration for the second real-time transaction monitoring database in pilot cities in more developed areas in the second half of this year and aim to complete the national registration system by 2020.

Platforms that fail to register on the monitoring system will be forced to cease operations.

Copyright © 2018 www.chinaknowledge.com

Send feedback or comments to: info@chinaknowledge.com

For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com

To access our page on Bloomberg, type CKFI