China’s crackdown on internet finance risks will be extended from its initial two-year scope, according to the People’s Bank of China, as regulators continue to set up a long-term monitoring system for China’s large online financial market.
The extension will last a further one to two years, according to Caixin. The crackdown will continue to focus on cleaning up peer-to-peer lending and microlending until June 2019, while many other financial institutions were already given the deadline of June this year to eliminate illicit practices.
The initiative, launched in April 2016, has shut down over 5,000 fraudulent or illegal online financial operations, the People’s Bank claims.
One source told Caixin that the focus will now more towards enforcement. “An important part of the campaign is that an inter-agency coordination mechanism has been set up involving central and local authorities to deal with internet financial market supervision,” he said. “It is the fundamental arrangement to support future regulation.”