(Yicai Global) Nov. 23 -- China's Ministry of Transport (MOT) will take targeted measures in advance to guide local transportation departments to react appropriately to issues related to the inability of some bike-sharing firms to refund user deposits due to business failure, the ministry said in a press briefing today.

The MOT will work with related departments such as National Development and Reform Commission, the Ministry of Housing and Urban-Rural Department of the country's central bank, the People's Bank of China (PBOC), to jointly conduct investigations in cities such as Beijing, Guangzhou, Chengdu and Changzhou and related companies.

It will also conduct systematic analyses regarding existing problems facing industry's development in order to form more effective policies.

Many medium-sized bike-sharing enterprises have suffered business failures recently including Kuqi (Beijing) Technology Co., and Tianjin Luding Technology Co. Bluegogo, established in October last year, secured CNY400 million in A-round funding in January this year, led by Black Hole Capital with a valuation of as high as CNY1 billion. Bluegogo announced in late October that users who applied for a deposit refund before Oct. 30, 2017, will be refunded before Nov. 10, 2017. However, up to now, there still remains a large number of users who have not received their refund.