Innovation essential to sustainable growth of microlending sector

Despite their inherently limited lending scales, microcredit companies are playing an important role in China's financial inclusion industry, analysts said.

However, the sector's sustainable development requires innovation among both companies and regulators, they added.

Microlenders specialize in providing small loans for borrowers such as small and microenterprises, and rural residents, who have difficulty securing loans from traditional banks because they lack collateral or credit records.