China to standardize non-financing guarantee sector

Chinese authorities will standardize the non-financing guarantee sector to promote financial and social stability, according to a government statement announced on Monday.

The statement was jointly released by eight government departments and agencies, which include the China Banking Regulatory Commission, National Development and Reform Commission, Ministry of Commerce and the People's Bank of China.

Governments at the provincial and municipal levels are asked to review the non-financing guarantee companies in their regions between December 2013 and August 2014.

Quite a few non-financing guarantee companies are engaged in unlawful financing activities, which include taking deposits, fund-raising, wealth management and usury lending, which has disrupted market and social order. They should be weeded out, the statement said.

Companies' names should also be standardized according to their main business to prevent vagueness, the statement said.