China on Thursday pledged to improve supervision over the online finance market, including peer-to-peer (P2P) platforms, to reduce risks and support the healthy development of the sector.
A policy document released Thursday by the State Council, China's cabinet, tasked various government agencies with working to contain Internet finance risks, improve the competitive environment and boost investors' risk awareness.
A long-term and effective supervision program should be established in line with growth of the Internet finance sector, while a dual-focus approach should better regulate the sector and promote its development, the document stressed.
High thresholds need to be in place to manage who is allowed to establish financial agencies, and stronger supervision of their capital will be carried out, it noted.
Lack of strong supervision has made the industry risky for investors.
