Police Crackdown Unnerves Shenzhen's P2P Lending Industry

(Shenzhen) – Recent police investigations into three Shenzhen companies running peer-to-peer lending services have unnerved many in the industry in the southern city, which has grown into the country's unofficial capital of the P2P business.

Since late August, Shenzhen police have arrested a large number of employees from three firms operating P2P loan websites. Police say two of the companies are suspected of breaking laws while taking money from investors.