PBOC Announces Regulations for Internet Finance Sector

On July 18, the People's Bank of China and ten government ministries jointly issued a new set of regulations intended to encourage development of China's Internet finance sector. The policy, officially called the "Guiding Opinions for Promoting the Healthy Development of Internet Finance", is the first major attempt to regulate Internet finance in China, and was jointly published with the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Public Security and the China Banking and Regulatory Commission, among other entities. 

The main goal of the Guiding Opinions is to clarify the specific roles of regulators in order to help maintain market order and ensure that online finance - including online investment, loans, insurance and other financial services - develop in a healthy manner. The Guiding Opinions specifically call on relevant government authorities to undertake the drafting of relevant security implementation measures and standards.