China is tightening oversight of online lending and digital marketing of financial products. By strengthening licensing requirements, lowering financing costs and improving information disclosure, authorities aim to better protect consumers and preserve financial stability.
As the digital transformation of the financial industry accelerates, the internet has become an increasingly important channel for marketing financial products, and has given rise to a range of irregularities.
Dong Ximiao, deputy director of the Shanghai Institution for Finance and Development, said key problems include misleading marketing that conceals risks, persistent illegal financial activities promoted through livestreams and short videos, and growing disorderly competition and unclear division of responsibilities between third-party internet platforms and financial institutions.
To better protect the legitimate rights and interests of financial consumers and investors, China released measures for the administration of online marketing of financial products on April 24.
Under the new rules, financial institutions and third-party internet platforms entrusted by them, must conduct online marketing activities strictly within the scope of businesses approved by financial regulators. They are prohibited from providing marketing services or convenience for illegal financial activities.
