Chinese Government Cracks Down on Online P2P Lending

Chinese Government Cracks Down on Online P2P Lending

The Chinese government has drafted rules to limit P2P lending in an effort to clean up the online financial sector. China’s central bank has drafted a plan following a video conference organized by the State Council, the cabinet, in mid-April with 14 regulators and ministries. The State Council approved the plan. The plan, viewed by Reuters, establishes stricter rules for P2P platforms. P2P lending quadrupled to 440 billion yuan ($67 billion) last year, according to Citigroup research. The rules prohibit lenders from holding clients’ capital in-house. Funds must be deposited with an....


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