New | New rules to bolster trust in China’s peer-to-peer lending platforms

Shanghai has revamped its peer-to-peer platforms information disclosure requirements as the sector is trying to win back investors with more transparency after high-profile frauds impacted public trust on the booming yet under-regulated industry.

Market watchers said the requirements, issued by the Association of Shanghai Internet Financial Industry, could set a benchmark for the sector that is trying to shed public doubt and embark on a regulated, sustainable growth model.

The organisation said yesterday that member online lending platforms will need to disclose detailed information on shareholders, senior management, staff, 90-day overdue products rate, financing parties, investors, and business partners such as guarantee companies and insurers, in a revamped 49-item, five category information disclosure list.

Members are required to disclose the information monthly.

Shi Pengfeng, CEO of wdzj.com, a portal that tracks the P2P industry, said the association’s call for a transparent information disclosure sets a milestone for the industry and Shanghai is leading in pressing ahead with stricter scrutiny.

“In the future, the association may rate such platforms based on their information disclosure in better guiding investors,” Shi said. “The sector, hit by fraud, needs to win back trust from investors.”