Recently, the China Banking and Insurance Regulatory Commission ("CBIRC") and the People's Bank of China ("PBC") formulated and issued the Interim Administrative Measures for Online Small Loans Business (Draft for Comment) (the "Draft for Comment") for public comments. Collection of comments has ended by this date.

The Draft for Comment covers the highlights as follows: (1) clarifying the definition and regulatory system of online small loans business; (2) defining the conditions to be met for operating online small loans business in terms of registered capital, controlling shareholders and Internet platforms; (3) standardizing business operation rules, and putting forward relevant requirements for online small loans' amount, loan uses, joint loans, and loan registration; (4) urging small loan companies which operate online small loans business to strengthen their business management, standardize equity management, capital management and protection of consumers' rights and interests, legally collect and use customer information, and not to induce borrowers to incur excessive debts; (5) clarifying the regulatory rules and measures, urging the regulatory authorities to improve the effectiveness of supervision and investigate the legal liability for violations of laws and regulations; and (6) specifying the arrangements for rectification of the stock business and the transition period.

(Source: China Banking and Insurance Regulatory Commission)