Boao Forum examines China’s internet finance challenges

Global Business

Internet finance was a key topic at the 2016 Boao Forum for Asia. While the industry is growing rapidly in China, the potential for fraud is ever present.

CCTV’S Yang Chengxi reports.

Boao Forum 2016 examines China's internet finance challenges

Internet finance was a key topic at the 2016 Boao Forum for Asia. While the industry is growing rapidly in China, the potential for fraud is ever present. CCTV'S Yang Chengxi reports.

Since its inception in 2013 in China, internet finance has attracted massive attention. Consumer services such as third party payments and financing methods like crowd-funding have witnessed double to even triple digit annual growth rates.

However, some areas of internet finance are facing a less positive outlook. Peer-to-Peer lending, which has grown rapidly as a mean of financing intermediaries, has suffered multiple setbacks in 2015. Cases of ponzi schemes and appropriations have taken a toll on the sector’s reputation.

China’s banking regulator issued a new set of guidelines for internet finance in July last year. Many say this a turning point for the sector.