One recurring topic at the conference that caught my attention was the idea of “having skin in the game,” which refers to platforms putting their own capital at risk so their interests would be aligned with investors that purchase loans as investments on these platforms. Putting capital at risk is a very relevant topic to platforms in China and is also very relevant to the pending regulations for the industry.
People’s Supreme Court of China issued a new ruling on matters related to private lending in China. Private lending is defined as lending between persons or entities that are not financial institutions sanctioned by financial regulators.
At the end of July, China’s central bank issued a set of draft regulations on online payments for public opinion, which recently concluded at the end of August. The draft rules were hailed by industry players and media as the “harshest rules in history” targeting the third-party payment industry, or non-bank organizations conducting payment-related operations.
If this happened in the US, it would be the equivalent of a managing director or senior ranking officer of Bank of America leaving to head the internet finance division of Netflix.
Within a week after the State Council issued the Guidelines for the internet finance industry, the China Insurance Regulatory Commission (“CIRC”) issued temporary regulations for online insurance services.
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