China online finance regulator launches credit rating platform: China Daily

Reuters

SHANGHAI (Reuters) - China's online finance regulator passed a resolution to jointly launch a personal credit information platform to serve online lending firms, China Daily reported on Monday. The move comes after The National Internet Finance Association of China (NIFA) warned "unqualified institutions" on Friday to stop lending as Beijing steps up a crackdown on the micro-loan sector to fend off financial risks. The NIFA will hold a 36 percent stake in the platform, which will be jointly launched with eight third-party credit service agencies, the paper said. The platform will primarily serve online personal lenders as well as traditional commercial banks, regulators and third-party service agencies, the paper added. The platform will have registered capital of 1 billion yuan ($151.59 million)and the NIFA will invest no more than 360 million yuan in the enterprise in the next five years. The lack of a coherent personal credit information sharing system has led to individuals borrowing from multiple internet finance firms and fraudulent loan applications, said the paper. ($1 = 6.5967 Chinese yuan renminbi) (Reporting By Engen Tham; Editing by Shri Navaratnam)