Crackdown on market chaos to expand, says CBRC official
Actions include a clampdown on activities such as illegal fund-raising and the regulation of transactions in financial markets
Wang Zhaoxing, deputy director of the China Banking Regulatory Commission (CBRC), said the agency will continue to rectify current market chaos in a planned, step-by-step manner, including a crackdown on activities such as illegal fund-raising and the regulation of transactions in financial markets, Securities Daily reported.
Dong Ximiao, a senior researcher at Chongyang Institute of Finance in Renmin University, thinks the expanded crackdown will focus on five areas.
First, access to markets will be more stringent, requiring all financial services providers to hold certain qualifications.
Second, there will be special corrective actions aimed at Internet finance, targeting P2P and small loans companies.
Third, enterprises keen to integrate their business with finance or Internet sectors will be tightly regulated.
Fourth, the commission will suspend giving the green light to small online loan companies.
Fifth, the crackdown on illegal fund-raising in the name of financial technology, like ICOs, will continue.
After more than six months of remediation, the momentum of market chaos has been diminished. The latest data released by the CBRC shows that as of October, inter-bank assets and liabilities decreased by 3.4 trillion yuan and 1.4 trillion yuan respectively over the beginning of the year.