Caixin
FINANCE

Chinese Peer-to-Peer Lenders Continue to Befuddle Regulators

By Zhang Yuzhe, Wu Yujian and Han Wei
While some P2P lenders have been trying to follow sweeping new government regulations of the industry, others have managed to skirt the new rules. Photo: IC
While some P2P lenders have been trying to follow sweeping new government regulations of the industry, others have managed to skirt the new rules. Photo: IC

(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.

You've accessed an article available only to subscribers
Try 4 weeks for $0.99
SUBSCRIBE
Share this article
Open WeChat and scan the QR code
Copyright ©2017 Caixin Global Limited. All Rights Reserved.