China’s online lending platforms are failing to satisfy the stricter requirements launched by regulators last year with respect to information disclosures.
In August 2017 the now-defunct China Banking and Regulatory Commission (CBRC) issued the “Online Lending Information Intermediation Organisation Business Activity Information Disclosure Guidelines” (网络借贷信息中介机构业务活动信息披露指引), as part of broader efforts by Beijing crackdown on online financing risk.
The Guidelines require that “online lending organisations clearly place information disclosure columns on their official websites as well as other online channels for the provision of internet lending services.”
Online lending platforms are required by the guidelines to publicly reveal a total of 20 information items for the previous month within five working days of the start of each month, including total loan amounts, the total number of loan transactions, the loan balance, the interest balance, and overdue amounts.
Almost a year following the launch of the requirements, however, Chinese online lending platforms are struggling to satisfy the new information disclosure requirements.
Data from the National Internet Finance Association of China (NIFA) indicates that as of 7 June, out of the 116 platforms for which it collects operating information 79 had last provided updates at the end of April.
A report from P2PEye.com (网贷天眼) further indicates that out of 80 platforms monitored less than 30% had publicly disclosed specific data on late payments, payment amounts or transaction numbers.
Information from China’s Internet Finance Registration Disclosure Services Platform (互联网金融登记披露服务平台) indicates that a large number of online lending platforms are only disclosing basic operating information each month, such as their total number of investors and repayment sums, yet omitting information on late payment amounts or ratios, which are often recorded as “zero.”
Many of the more than120 online finance organisations registered with the platform have also failed to provide their financial reports for 2017, which were scheduled for delivery prior to 30 April.