China Bans Misleading Phrases and Payment-App Loan Embeds in New Online Marketing Rules

HIGHLIGHTS

• New online financial marketing rules took effect April 24, tightening rules on third-party platforms and payment apps

• "Low risk", "high returns", and "low interest rates" now explicitly banned in marketing

China's financial regulators on April 24 released new rules governing the online marketing of financial products, aiming to curb misleading promotions and clarify responsibilities between financial institutions and internet platforms.

The measures explicitly prohibit phrases such as "low risk," "high returns," and "low interest rates" in marketing materials. Non-bank payment institutions are no longer permitted to embed loan or wealth-management products directly within payment tool options — a practice that had linked credit access to payment scenarios. Employees of non-financial institutions are barred from marketing financial products through livestreams, short videos, or WeChat official accounts.

Under the rules, third-party internet platforms must operate strictly within the scope of the financial institution's regulatory approvals and are prohibited from subcontracting marketing activities. Financial institutions with geographic restrictions may only offer products to customers in regions where they hold branches and are registered. Platforms must redirect users to financial institutions' own systems for contract signing and fund transfers, removing themselves from the core transaction.

Dong Ximiao, deputy director of the Shanghai Institution for Finance and Development, said the rules create unified standards for online and offline businesses, tighten market-entry requirements for third-party platforms, and enhance disclosure of financing costs. He noted that China's online loan-facilitation market has exceeded RMB 6 trillion, and that unidentified or mispriced risk could threaten financial stability.

Wang Pengbo, chief analyst at Botong Analysys, said platforms must now use only institution-approved marketing content, strengthen qualification checks, and offer non-personalized recommendation options.