China cracks down on peer to peer lenders
This month China has declared a victory over peer-to-peer lenders by introducing regulatory pressure that has cracked down on the riskier digital financing sector.
Peer to peer lending brings together lenders and buyers, cutting out the middle party and helping bring finance to companies who would otherwise be unable to access it. The change has the potential to have knock-on effects for the global peer to peer lending market.
Mr. Guo, the secretary for the country’s central bank has been adamant that the sector has ‘all but zeroed out’ and is confident that the sector will see an increased crackdown in the new year. Whilst some peer to peer lending banks in China say they have continued to operate, the falling stock prices of FinVolution and Yiren Digital are a cause for concern.
