The Beijing Municipal Bureau of Financial Work is considering tighter regulations over the management of deposits collected by bike sharing companies, in order to protect consumers and reduce financial risk in the industry.
Bike sharing companies registered in Beijing may be asked to put all bike deposits they have collected into a special bank account that will be overseen by regulators, according to Chinese media reports citing insiders.
China's mushrooming bike sharing companies have aggregated RMB6 billion (US$872 million) or more in user deposits, according to industry observers.
"The deposits do not belong to bike sharing companies, and they cannot touch this money," said an authoritative person at the Beijing Municipal Bureau of Financial Work, according to the report. "This money cannot be used for loans or investments, acti...
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