Screws to tighten further on non-bank lendingChina | 27 Feb 2018 2:58 pm
China will tighten its crackdown on illegal fundraising to fend off financial risks, according to an inter-agency meeting.
The supervision mechanism for illegal fundraising will be strengthened and local government officials will be held accountable.
Online lending, property and rural cooperatives will be under greater scrutiny.
In 2016, there were 5,197 illegal fundraising cases, involving 251.1 billion yuan, down by 14.48 percent and 0.11 percent year-on-year, respectively, official data show.
Despite the progress, eastern coastal areas, central and western regions with large populations are still vulnerable to fraud.
Internet finance has grown as investors seek higher returns than bank deposits while small businesses secure funds through online brokers. But risks have piled up as regulations cannot keep up with the pace of development, Xinhua reports.
Among high-profile fraud cases in the past years, Ezubao, an online peer-to-peer lending platform, cheated the public out of nearly 60 billion yuan through fake investments.