First private financing regulations in China passed
Updated: 2013-11-23 10:15
(Xinhua)
|
|||||||||||
HANGZHOU -- East China's Zhejiang province approved regulations on private financing for Wenzhou city on Friday, according to local authorities.
The regulations, approved at the 6th session of the 12th Standing Committee of the Zhejiang Provincial People's Congress, are the first of their kind in China.
According to the regulations, private loans involving more than 3 million yuan ($492,000) or more than 30 lenders should be recorded by local financial management authorities or private lending registration service centers.
The full context of the regulations has not yet been published.
The State Council, China's cabinet, approved the establishment of a pilot financial reform zone in Wenzhou in March last year to regulate private finance after a crisis in the city in 2011.
In Wenzhou, a large number of small and medium-sized enterprises (SME) used to resort to underground financing as state-owned banks failed to meet their needs.
However, with the monthly interest rates as high as five percent, some companies were unable to return the loans and went bankrupt. Other companies were affected as many of them were loan guarantors for each other.
Related Stories
Wenzhou financing regulation expected in autumn 2013-03-26 09:18
Final approval sought for Wenzhou private-financing regulation 2013-03-11 19:22
More change is in the cards in finance: Official 2013-11-19 07:49
New players emerge to finance China's small, emerging firms 2013-11-19 07:49
Platform to aid trade financing in FTZ 2013-11-15 10:36
Today's Top News
Li expected to sign big deals in Romania
Chinese rescuers reach Philippines
Conditions set for future CE
Reform to stimulate growth
Bitcoin rollercoaster hits China, challenging supervision
Li: China-Europe 2020 plan 'unprecedented'
Blueprint tightens China-EU links
Obama sets new date for Asia visit
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
The way of kindness |
Attention on future reform agenda |
A second opportunity |
Luxury giants tap into mainland market |
Tourism opens the road to riches |
Ancient, modern under same roof |