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China's Central Bank to Establish Online Finance Stats Monitoring System

Beijing Business Today, 11/30/15

China's Central Bank and Association of China Internet Financial Industry have jointly developed a preliminary system for the monitoring of online finance statistics, according to an announcement by Sheng Songcheng, department head of survey and statistics at the People's Bank of China. The announcement, made at the Second China Internet Finance Development Summit, said that the Central Bank will begin using the system by the end of the month to understand the basic circumstances of the market and to better guide policy making and regulatory decisions.

The Central Bank currently monitors statistics for all seven major types of internet finance business: online payment, online lending, equity crowdfunding, online fund sales, online insurance, online trusts, and e-commerce. The Central Bank is considering carrying out statistical monitoring of any other businesses that fall under the scope of internet finance. The current emphasis of the Central Bank, however, is those businesses or fields with greater risk, such as online lending, equity crowdfunding, and third-party financial depositaries.

A portion of the monitored data comes directly from the People's Bank of China, the China Securities Regulatory Commission (CSRC), the China Insurance Regulatory Commission (CIRC), and the China Banking Regulatory Commission (CBRC). The Association of China Internet Financial Industry is entrusted to collect other data, and modernized techniques will allow the system to automatically extract data from company websites.

The indices collected for the online finance statistical monitoring system can be classified into two levels. The first is gross business data, including basic information, assets, liabilities, profits, and losses of different organizations, industry based aggregates of said data, and product risk information. The second is detailed information on specific deals, such as information on investors in a particular P2P platform, terms of a loan, or information on a project seeking equity-based crowdfunding. Client provisions and loan loss provisions for certain companies will also be included in the statistics.

Keywords: regulation Internet monitoring China Banking Regulatory Commission CSRC People's Bank of China online payment online insurance crowdfunding CIRC Sheng Songcheng online lending ACIFI financial services

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