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Central bank supports emerging Internet financing

Xinhua | Updated: 2013-03-14 10:01

BEIJING -- China's central bank governor Zhou Xiaochuan said Wednesday that the bank is supportive of emerging Internet-aided financing models such as Alibaba's financing platform as they help bring challenges and competition to traditional sectors.

"The new models will force traditional sectors to improve their products and services," Zhou said at a press conference on the sidelines of the annual legislative session, as he was asked to share opinions on such new financing models.

Acknowledging the challenges the new models may bring to regulatory authorities, Zhou said the related departments should update standards to adapt to the technology changes.

His remarks came as some innovative financing platforms, which rely on Internet technologies, have flourished in China in recent years, posing challenges to conventional banking.

The most notable model is run by E-commerce giant Alibaba. The group has launched a financing platform to offer loans to its small business traders whose business records on its website have met certain requirements.

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