The letter and wealth information online loan platform will benefit from the sup

China Network Information Platform letter borrowing and rich (XRF.N) Chief Executive Officer (CEO) Wang Zhengyu said the company will be based on the Chinese government to clean up the fast-growing network of small loan companies and the introduction of new regulations, and pay for their own business practices Make the necessary adjustments.

Online microfinance companies have become the focus of supervision of regulatory agencies. The circular issued by the People's Bank of China and China Banking Regulatory Commission last Friday said that "excessive borrowing, repeated credit granting, improper collection, abnormally high interest rates and infringement on personal privacy are all outstanding issues."

In an interview with Reuters, Wang Zhengyu said he is still bullish on the overall market and that Letter Wealth will benefit from China's action of clearing online microfinance companies. There are thousands of online small loan companies in China, more than the sum of all other countries in the world.

He said the only change caused by the (new rules) is that some companies may encounter some difficulties in the short term. But he added that the market may need to be cleaned up or upset, that some businesses may be forced out of the market, and that some may have to re-position themselves.

Letter and rich in April in the New York Stock Exchange. Wang Zhengyu said so far the company fully comply with regulatory requirements, and with the local government on the specific content of the new regulations in close contact.

Shares of the company tumbled nearly 20% after the regulator issued a notice on Friday, continuing its setback of more than 5% on Monday.