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Shanghai takes lead in information disclosure for online lending

Updated: 2016-08-01

( chinadaily.com.cn )

Information about a total of 74 online lending platforms in Shanghai was released to the public by the Association of Shanghai Internet Financial Industry (ASIFI) on July 25, making Shanghai the first city in China to disclose information about the online lending industry.

This move was in response to a guideline for information disclosure of peer-to-peer lending platforms issued by the ASIFI last August to ensure healthy and sustained development of the industry.

Peer-to-peer lending, or P2P lending, refers to the practice of lending money to individuals or businesses through online services that match lenders directly with borrowers.

Five types of information were emphasized in the guideline, such as company information, product information, business information, and financial information.

In May this year, the ASIFI announced that the scope for information disclosure was expanded to cover all online lending platforms in Shanghai.

The information disclosed can serve as a reference for investors to choose online lending platforms, and the platforms with little information disclosed to the public will become less desirable, said Ma Jun, an analyst from a financial consulting company.

However, the ASIFI still warned investors to remain cautious when choosing a lending platform as the information was offered by the platforms on their own initiative and has not been verified by the association at the moment.

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