Crackdown on P2P and financial asset exchanges
Insiders say many firms have emerged in the name of asset management and operate online, but they are not covered by regulations
The Leading Group on Rectification of Internet Financial Risks under the State Council has issued a notice requiring more action to improve asset management via the Internet, Yicai.com reported.
In recent years, platforms such as P2P and local financial asset exchanges have flooded into the area of asset management. Insiders say a variety of companies have emerged in the name of asset management and operate online, but they are not yet covered by regulations.
Some P2P platforms play the role of “super-lender,” said Fang Song, chairman of Guangzhou Internet Finance Association.
Such platforms loan money to borrowers and register the mortgages under the platforms’ names, then assign the claims to others on the platform, so as to acquire funds.
In this way, such platforms are fully equipped with the characteristics of asset management companies, which are included under regulations.
Meanwhile, financial asset exchanges have also emerged online. They not only provide services such as listing, registration and custody, but also become the issuer and manager of asset management products.