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FINANCE

Listed Firms Shelve Microlending Expansion Plans

By Wang Zhaofeng and Dong Tongjian
Shenzhen-listed Zhejiang Busen Garments and Nexgo Inc. have cancelled plans to set up online lenders after taking the new policy on microlending into consideration. Photo: IC
Shenzhen-listed Zhejiang Busen Garments and Nexgo Inc. have cancelled plans to set up online lenders after taking the new policy on microlending into consideration. Photo: IC

Two publicly traded companies said they are no longer pursuing a plan to expand into online microlending, a day after the government asked local authorities to suspend granting new licenses.

Shenzhen-listed Zhejiang Busen Garments Co. Ltd. said in a statement Wednesday that it decided to withdraw an application for a license to establish an online small loan company in Xi’an, the capital city of northwestern China’s Shaanxi province. The company said the latest policy might increase operating costs as well as pressure on profitability.

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