Zheng Xiaodong, head of the business department of the Mutual Gold Association: The platform is sunny to avoid bad money expelling good money

On November 30, the "First Asian Financial Annual Conference" hosted by the 21st Century Business Herald was held in Beijing, and Zheng Xiaodong, head of the business department of the China Internet Finance Association, said at the conference that if 2015 is the first year of Internet financial supervision, 2016 is the normative year of Internet finance, and within two years, the regulatory authorities have introduced a series of standardized management measures for some problems in Internet finance. Zheng Xiaodong said that sunshine is the best "antiseptic", and the association will make the trajectory of online loan funds transparent through the information disclosure platform to avoid bad money expelling good money.

It is a great honor to share with you the relevant content of the association in infrastructure construction. 2015 is the first year of supervision, 2016 is the year of standardization, before the barbaric development of the Internet financial field is prominent, there was a "three noes" status quo in the network of mutual funds: no supervision, no access threshold and no standard rules. In response to such problems, since 2015, supervision has begun to act actively, in July, ten ministries and commissions issued the "Guiding Opinions on Promoting the Healthy Development of Internet Finance", which divided each format, and also made a clarification for the regulatory authorities belonging to each format, which is the first step to solve the problem of mutual fund without supervision; after that, insurance quickly introduced the interim measures for the management of Internet insurance; in December 2015, the CBRC also issued the "Interim Measures for the Management of Business Activities of Online Credit Intermediaries" for comments. On August 24, 2016, the official Interim Measures for the Management of Business Activities of Online Credit Intermediaries (hereinafter referred to as the "Measures"),which listed 13 negative lists and 13 prohibitions in the Measures, drawing a red line from the supervision; in September, the implementation plan for the special rectification of Internet risks "1+6" was announced to further clarify the regulatory requirements.

The entry threshold takes the online lending information intermediary p2p as an example, not long ago just issued the "Online Lending Information Intermediary Filing registration management guidelines", which is the embodiment of the double responsibility of the CBRC and the local financial office, and is the guideline for the platform to file with the local financial office, and the details of the specific filing requirements are mastered by the local financial office or financial bureau according to the actual local situation, which is equivalent to the first entry threshold. The second is the third-party depository of funds, as well as the telecommunications and information services business license, which is often referred to as the iCP certificate. The step for the practitioner to obtain access is to first obtain a business license issued by the industry and commerce department, which clearly has the business scope of online lending, and then obtain a record from the local financial office, obtain the third-party capital deposit and iCP certificate after obtaining the record, and then return to the financial office for a recordback after obtaining it. This is to solve the problem of no barrier to entry.

The third "three noes" problem is that there are no rules and no standards. In the "Guiding Opinions on Promoting the Healthy Development of Internet Finance" of the ten ministries and commissions, it is clear that the China Internet Finance Association has been established, and one of the responsibilities entrusted to it is to formulate operation and management rules and industry standards according to the type of business. In the "8.24" management interim measures, the CBRC also clarified the responsibilities of the association's business rules, which is to carry out the formulation of self-discipline rules, business rules and industry standards. In the implementation plan of risk special rectification, the association also undertakes some business management work such as the whistleblowing platform.

In the realization path of business rules and management of business standards, the formulation of standards and the issuance of documents is the first step, the most important thing is to provide infrastructure services, and promote compliance management with everyone through infrastructure. This is an idea of the association, not from the perspective of pure supervision, but through the service of infrastructure, to regulate the market positioning. In terms of infrastructure construction, the association has carried out relevant work including credit information sharing, statistics, and information disclosure. I would like to focus on information disclosure here.

Sunlight is the best "antiseptic", and information disclosure is an effective way to solve non-compliance behavior. This year, the association issued information disclosure standards, stipulating what should be disclosed and what should be encouraged. This information standard is to require each member institution to make transparent disclosure on its own website, or other open methods, after the standard documents are issued, as of now, the disclosure of the situation of each company is very different, each company has different standards of grasp, many have not yet achieved openness and transparency. In view of the above problems, the next step of the association is to build a centralized information disclosure platform, and each company uniformly puts the information on the platform of the association to disclose, so as to avoid the situation of different scales and improve the transparency of the industry.

The information disclosure platform we have built has three main parts in content. The first part is the information of the practitioner institution, including basic information, governance information, website information, financial accounting information, etc.; the second part is the operation information, which contains many indicators, including the balance of loans, the number of investors, the number of financing, the overdue project overdue rate amount overdue rate, per capita investment, per capita financing, etc.; the third part is the project information, which contains the amount, repayment method, and the combination of penetrating management ideas to disclose the borrowing purpose and borrower information of the project.

At the same time, everyone is more concerned about the limit of 200,000 and 1 million in the interim measures for the management of online lending. Taking natural person borrowers as an example, the limit of a single platform is 200,000, and the cross-platform limit is 1 million. When this policy is implemented, it is particularly necessary for us to build infrastructure, because once the cross-platform limit exceeds 1 million, a single online lending platform cannot grasp the loan balance information of this borrower on other platforms, and we can give early warning through the unified infrastructure information disclosure built by the association to deal with this situation of exceeding the limit.

We set three goals for the information disclosure platform, the first is service supervision, to provide data support for supervision. The second is to serve the practitioners to prevent bad money from expelling good money and to support the good and limit the bad. The third is to serve the society, improve transparency, and protect the interests of investors.

The construction of infrastructure is inseparable from the strong support of practitioners and the public, and the China Internet Finance Association will certainly live up to its mission and play its due role. Thank you!

For more information, please download the 21st Century Business Herald app