Caixin reports China’s State Council and the nation’s financial regulators have issued a sweeping set of plans to tackle risk and outright fraud in the booming Internet financing industry, in which consumers have been swindled out of billions of yuan. The plans include more detailed guidelines to increase supervision of the online financing industry, including peer-to-peer (P2P) lending, equity crowd-funding and third-party payments. The China Banking Regulatory Commission will require local governments to comb through P2P lending platforms in their respective area to focus on identifying risks. High on the list are P2P lenders that set up capital pools by mixing client funds with different investment maturities, and making commitments to guarantee the principal and interest repayments on behalf of the borrowers in their advertising.
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