Thu, Dec 07, 2017 - Page 10 News List

PRC targets online lending as crisis fears grow

AFP, BEIJING

Regulators have stopped approving new online microlenders.

The move sent the share prices of Qudian, PPDAI Group and China Rapid Finance tumbling in the past week and J Capital Research research director Anne Stevenson-Yang said the regulations could lead half of all online lenders to fold.

Managing risk can be a tricky balancing act for online lending platforms when a large portion of the Chinese population lacks credit scores.

Some platforms write off the bad loans, while others have taken defaulted borrowers to court.

Alibaba has built a credit scoring system called Sesame Credit that tracks users on its platforms and provides perks to those with high credit scores.

It has also limited annualized interest rates to 24 percent.

This story has been viewed 1116 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top