RMB. Photo: iStock

Chinese financial regulators have stepped up the crackdown on illegal financing guarantees, following the still ongoing rectification of the micro-loans industry, Chengdu Business Daily reported.

The Sichuan provincial Financial Work Bureau launched a comprehensive inspection on the compliance situation of financing guarantee companies in the region, clamping down severely on a total of 78 firms.

Among them, 49 firms were temporarily closed for rectification, including companies with a certain reputation in the industry, such as Sichuan Aobang.

While another 29 companies were disqualified and removed from the sector entirely.

Those companies that have been suspended are not allowed to launch new businesses other than financing guarantees.