Internet Finance Fest

Finance being the core of Internet finance, it needs to control risk; the financial market clearly needs a stable environment under which to guarantee fund security, according to Li Aijun, professor at China University of Political Science and Law. The notification constitutes a strict regulation for both financial and non-financial institutions. It makes clear that small loan companies belong to non-financial institutions that bear their own risks and issue loans from their own fund. It also stipulates the establishment of a standard through the industry’s self-regulatory bodies whereby small loan companies do not accept cash deposits, lend money at usurious rates, or use illegal means to recover loans. This implies that obtaining financial licenses for Internet finance is no easy matter.