Regulators cheer on online finance with watchful eye

China's regulators are supporting the development of new forms of online finance - within certain limits - as traditional banks watch the encroachment of revenue-hungry Internet companies onto their turf.

The central bank will support the burgeoning Internet finance sector, but it will prevent the fledgling industry from moving into areas such as illegal fund-raising, said Liu Shiyu, vice-governor of the People's Bank of China.

"Based on the premises of honesty and trust, all financial activities and services that are beneficial to inclusive growth should be respected and encouraged," Liu told the Internet Finance Summit on Tuesday.