Chinese Peer-to-Peer Lenders Continue to Befuddle Regulators
(Beijing) — When there is a policy, there is always a new countermeasure.
This adage rings especially true in today’s scandal-plagued peer-to-peer (P2P) online lending sector in China.
Following years of explosive yet unchecked growth of marketplace lending in China, the central government in August announced sweeping — and the country’s first-ever — regulations to rope in the nascent sector. The aims aim to protect consumers from predatory lending terms, ensure adequacy of the lenders’ capital, and limit their risk-taking behavior, which could potentially destabilize the financial system.