Shanghai rules boost Internet finance

Shanghai yesterday unveiled a set of rules to develop the city's Internet-based financial industry to promote the sector and help foster economic growth.

The city will encourage banks, securities companies and insurers to develop Internet-based products and services, the city government said in a statement.

It will also explore ways to set up private equity funds and angel investment funds to invest in startup Internet finance companies, the statement said.

The government will also offer financial assistance to launch industry funds that specialize in mergers and acquisitions in the Internet finance sector and encourage qualified Internet finance companies to list at home or abroad, the statement said.

The local government will encourage large Internet companies to set up small-loan subsidiaries as well as those engaged in innovative businesses such as financial leasing and guarantee, it said.

Authorities will grant preferential policies to lure senior managers and advanced technicians to the city's Internet finance sector by helping them obtain residence permit in Shanghai.

Internet finance companies will be encouraged to cooperate with licensed financial institutions on safety controls and set up cloud-computing database to facilitate information exchanges.