Regulation would govern deposit refunds

The Ministry of Transport issued a draft regulation for public comment on Tuesday covering the management of deposits in emerging businesses - including bike-sharing, internet car hailing and car-sharing companies - in a bid to better safeguard users' interests.

The regulation, if enacted, would require that companies charge users a deposit based on their service capability. The total prepaid funds in a user's account on a bike-sharing platform, for example, would be capped at 100 yuan ($15), while the money for other new transportation business would be less than 8,000 yuan.

The draft regulation makes it clear that users' prepaid funds can only be used for a company's main business, and may not be used for investment - such as real estate, equity, securities and bonds - or for debt service.