Business · Markets · 1 hr ago
China introduces rules to curb misleading online financial marketing
China’s new rules for marketing financial products online took effect on September 30.
They were drawn up by the People’s Bank of China and seven other government departments.
The rules target claims such as “low interest” and “instant approval” that can hide loan costs, as well as investment promotions that downplay risks.
They also require financial products to be clearly separated from payment options and restrict marketing by people and companies without the required licences.
The aim is to make online financial promotions clearer and ensure they are handled by qualified institutions and staff.
Some internet platforms and financial institutions have started checking their promotions and practices.
The rules are expected to bring changes to marketing in payments, funds and insurance.
China’s Measures for the Online Marketing of Financial Products took effect on September 30.
The rules were drawn up by the People’s Bank of China and seven other departments.
They restrict misleading claims about loans and require financial products to be clearly distinguished from payment tools.
The rules also limit financial marketing by people and organizations without the required qualifications.
Some internet platforms and financial institutions have begun reviewing their marketing practices.
- Who
- The People’s Bank of China and seven other departments drew up the rules.
- What
- The Measures for the Online Marketing of Financial Products regulate how financial products are marketed online.
- When
- They took effect on September 30; the year is not stated in the article text.
- Where
- China.
- Why
- To address risks including false or misleading promotion, disorderly competition and marketing that violates public standards.
This story does not have two clearly opposing sides.
The Measures for the Online Marketing of Financial Products took effect.
Some internet platforms and financial institutions began reviewing and rectifying their marketing practices.
- Departments involved
- The People’s Bank of China and 7 other departments
- Effective date
- September 30
- Loan marketing claims barred
- Low threshold,” “instant arrival” and “low interest rate
- Tencent review priorities
- Misleading financial marketing, incomplete disclosures, non-compliant wording and marketing without qualifications
- User recommendation control
- China Everbright Bank offers a switch to turn personalized recommendations on or off
What people are saying
The Measures emphasize licensed operation and compliant entrustment, and will push the industry from traffic-first toward a sustainable model based on compliance and service.
The introduction of the Measures provides clear compliance guidance for online marketing of financial products and, in the long term, is conducive to the healthy and orderly development of the industry.
Sources
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