China clamps down on online micro lending, causing US-listed shares to plunge
Beijing — China took steps to rein in the rapidly growing and lightly regulated market for online micro-lenders in the government’s latest crackdown on internet finance, sending shares of US-listed Chinese financial firms into a tailspin. A government body issued a notice to provincial governments on Tuesday, urging them to suspend approval for setting up new internet micro-lenders, sources who had seen the notice told Reuters. The multi-department body, tasked by the central government to rein in risks in the internet finance sector, also told local regulators to restrict granting of new approvals for micro-loan firms to conduct lending across regions, said the sources. Beijing started a crackdown on the internet finance sector in 2016, issuing guidelines and rules to regulate online financial activity following a spate of scandals and frauds. The clean-up has led to the creation of a top-level body comprising government entities that include the central bank and the banking regula...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.