A financial law forum is held in Lujiazui, Shanghai's financial hub, on Sept 28. [Photo provided to chinadaily.com.cn]

A financial law forum was held in Lujiazui, Shanghai on Sept 28, to discuss creating a better legal environment in the city's finance sector.

The event, held regularly in the finance hub, was attended by many heavyweights in the industry including the People's Bank of China (PBOC).

Fang Yiqiang, deputy director of the payment and settlement department of the Shanghai head office of PBOC said the bank is working with government to strengthen supervision on the Internet finance sector and crack down on illegal operations.

Fang Yiqiang, deputy director of the payment and settlement department of the Shanghai head office of PBOC, speaks at a financial law forum held in Lujiazui, Shanghai, on Sept 28. [Photo provided to chinadaily.com.cn]

Fang pointed out that the major risk in Internet finance lies in peer to peer lending (P2P) platforms, some of which have illegal behaviors such as illegal fundraising, illegal issuance of securities, false information disclosure, misleading investors, and others.

Fang suggested rolling out different supervision measures for different Internet finance operations and urged cooperation among supervision departments.

Ma Lixin, deputy director of Shanghai office of China Banking Regulatory Commission, said that a good financial law system helps enhance supervision and encourage financial innovation.

Ma also considered that Shanghai, a financial center with active financial transactions and abundant financial products, is an ideal practice base for legal construction in finance.