Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
Trending in China: Xiaomi CEO’s Shows How Best To Harness China’s Social Media Humor for Serious Business
Apple Takes Down Over 30,000 Apps from China Store Amid Government Crackdown
Chinese Chipmaker SMIC to Establish Joint Venture for Wafer Production
Microsoft Said Plan to Acquire TikTok Will Continue
Uber Abandons Plan to Move Regional Headquarters to Hong Kong
Trending in China: Undergraduate Degree in Housekeeping — Valuable Asset or Waste of Resources?
Huawei and Apple Shine in China’s Smartphone Market During Second Quarter
Video Streamer iQiyi Eyeing Southeast Asian, Middle East Expansion, Executive Says
Lawson Expands in China With Prefab Convenience Stores
TikTok Undergoing U.S. Investment Review, Treasury Secretary Says
Chinese Community E-commerce Firm Nice Tuan Nets $80 Million in Third Funding in 2020
Trending in China: Shanghai Film Festival Rekindles Childhood Memories with Outdoor Screenings
China’s EHang Gets Green Light to Test Self-Flying Vehicles in Quebec
Trending in China: Pop Star Jay Chou’s Livestream Signals Kuaishou’s Increasing Partnership with Celebrities
Tencent to Pick Up Stake in Shanghai-listed Weaver Network for $110 Million
U.S. Senators Worry TikTok Could Be Used to Interfere in Elections
Tesla Launches Hiring Spree in China as It Prepares for Shanghai Production of Model Y
ByteDance AI Lab Head to Leave as TikTok Faces Global Headwinds
Huawei May Become the World’s Biggest 5G-Phone Maker This Year
Trending in China: Domestic Violence Victim Left Paralyzed After Flight Attempt Makes Second Try at Divorce
China Freezes $1.5 Billion of P2P Assets in Intensified Probe

By Bloomberg / Feb 18, 2019 03:32 PM / Economy

Photo: VCG

Photo: VCG

Chinese police have frozen about 10 billion yuan ($1.5 billion) of assets across more than 380 peer-to-peer lenders in an escalated investigation into illicit financing.

Codenamed ‘Fox Hunt,’ the operation spanned 16 countries and regions including Thailand and Cambodia and led to the arrests of 62 suspects implicated in Chinese P2P frauds since June, China’s Ministry of Public Security said in a statement on Sunday. It didn’t disclose more details but said police is still recouping losses.

While a lack of oversight contributed to a ballooning in P2P loans, the sector has come in for special scrutiny under President Xi Jinping’s crackdown on financial risk. Authorities are now dramatically shrinking the market, which spawned the nation’s biggest Ponzi scheme, protests in major cities, and life-altering losses for thousands of savers.

Some P2P companies are attracting investors by promising high interest rates under the guise of “financial innovation,” while others fabricated investment projects and squandered the money, the police said. At least 100 people have dropped out of contact or disappeared before the firms went bust, with some having fled overseas, according to the statement.

The number of Chinese peer-to-peer lenders may drop by 70 percent this year to as few as 300, according to an estimate from Shanghai-based Yingcan Group. Only some 50 firms will survive eventually, Citigroup Inc. predicts.

Related: Goldman, Citi Drop Online Lender IPOs Amid China Crackdown

Share this article
Open WeChat and scan the QR code