Industry professionals and regulators have called for more supervision on the online finance business, China Securities Journal reported Monday. The call, issued at a recent industry forum, came amid rapid growth in the online finance sector after many Chinese internet firms stepped into the sector last year, it said. As the business grew, several problems have emerged, such as firms failing to disclose risks when selling online investment fund products, the report said, also citing issues related to peer-to-peer lending. Tang Ke, deputy director of the Hanqing Advanced Institute of Economics and Finance at Renmin University of China, said online finance is especially important to China, given that stock and bond markets in the country are not mature enough to allocate financial resources efficiently. Online finance can fill the void left by traditional financial firms, he said.
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