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China's regional authorities are trying to prevent financial risks by scrutinizing lenders including those serving small companies, with Beijing, Shanghai and Jiangsu provinces releasing new rules to combat unlicensed financial activities, the Economic Information Daily reported. Authorities are concerned that the central government's increasing supervision over fintech industry may fan risk exposures, the daily said citing analysts. Local authorities should clarify the legal status of microfinance companies, the newspaper said citing Dong Ximiao, chief researcher at Merchants Union Consumer Finance Co Ltd.