Reuters reports that “a top-level body comprising government entities that include the central bank and the banking regulator” has issued an urgent notice demanding the suspension of regulatory approval for the setting up of new internet micro-lenders, while also ordering a restriction of micro-lending across provinces.
- Reuters says that the notice has sent “shares of U.S.-listed Chinese financial firms into a tailspin.”
- The government began actively regulating internet finance companies last year.
- Reuters says that “unsecured consumer lending via Chinese online platforms more than tripled last year to almost $140 billion.”
We’ll be back next Monday.