PBOC Closes Pre-Paid Card Company a Year after Problems Arose

(Shanghai) – The central bank has told a third-party payment company it can no longer sell prepaid shopping cards that were popular in Shanghai and affluent provinces, a year after it learned the firm was engaged in illegal operations.

The People's Bank of China (PBOC) said in a statement on its website on January 7 that Shanghai Chang-go Corporate Services Co. Ltd., a prepaid card-issuing company that has had difficulty giving customers refunds since late 2014, misappropriated reserve deposits, forged financial documents and obstructed official inspections.