The Guangzhou Microfinance Industry Association issued a “Risk Reminder Letter” on the evening of the 14th. The “Risk Reminder Letter” states that all member units should strictly comply with the requirements of the “Notice on Strengthening the Supervision and Administration of Microfinance Companies” to ensure that microfinance companies should clearly agree on loan uses with borrowers, and that loan uses should comply with laws and regulations, national macro-control, and industrial policies. Among them, loans from microfinance companies must not be used for “investment purposes such as stocks or financial derivatives”, regulate business practices, pay close attention to the use of loans and capital flows of the parties involved, and strictly prohibit the illegal flow of relevant funds into the stock market and other fields. According to information, this is the first local microfinance industry association announcement in the country to announce a strict ban on credit funds flowing into the stock market.

The Guangzhou Microfinance Industry Association issued a “Risk Reminder Letter” on the evening of the 14th. The “Risk Reminder Letter” states that all member units should strictly comply with the requirements of the “Notice on Strengthening the Supervision and Administration of Microfinance Companies” to ensure that microfinance companies should clearly agree on loan uses with borrowers, and that loan uses should comply with laws and regulations, national macro-control, and industrial policies. Among them, loans from microfinance companies must not be used for “investment purposes such as stocks or financial derivatives”, regulate business practices, pay close attention to the use of loans and capital flows of the parties involved, and strictly prohibit the illegal flow of relevant funds into the stock market and other fields. According to information, this is the first local microfinance industry association announcement in the country to announce a strict ban on credit funds flowing into the stock market.