Beijing Wants China's Big Four Asset Managers to Step Up in P2P Risk Elimination
Song Yikang
DATE:  Aug 17 2018
/ SOURCE:  Yicai
Beijing Wants China's Big Four Asset Managers to Step Up in P2P Risk Elimination Beijing Wants China's Big Four Asset Managers to Step Up in P2P Risk Elimination

(Yicai Global) Aug. 17 -- China's banking regulator has called upon the nation's big four asset management firms to quell risks stemming from peer-to-peer lending.

The China Banking and Insurance Regulatory Commission wants the firms to actively assist in risk management by backing creditors' rights and shutting down problematic P2P platforms, a senior executive from one of the corporations told Yicai Global. The four state-owned titans, which were set up a decade ago to handle bad debts, are China Great Wall, China Huarong, China Cinda and China Orient.

China's financial regulators have been looking to crack down on sketchy P2P loans after hundreds of lending platforms were forced to close their doors over the past few months due to a myriad of issues, from the nationwide credit crunch to mismanagement or just straight up fraud.

Two workgroups specializing in internet finance and online loans have proposed 10 measures to guard against risk in the sector, including outlawing transfers made to evade financial obligations, punishing executives and ensuring problematic institutions exit the market correctly.

Earlier this month, the internet finance workgroup demanded all provinces and central government-run municipalities submit a list of borrowers who had attempted to shirk their debts. It plans to build the data into a national credit database.

Editor: James Boynton

Follow Yicai Global on
Keywords:   P2P,Risk,Asset Management