China tightens control over online microcredit organizations’ activities

Almaty. November 22. Silkroadnews - China tightens control over the activities of online micro-credit organizations, Reuters reported.
“China took steps to rein in the rapidly growing and lightly regulated market for online micro-lenders in the government’s latest crackdown on internet finance,” the report said. With this it is explained, the Chinese government agency sent an urgent notice to the provincial governments calling on them to suspend regulatory approval to open new online microcredit organizations and restrict granting of new approvals for micro-loan firms to conduct lending.
Last year, Beijing launched a relentless struggle with the Internet finance sector, issuing recommendations and rules to regulate online financial activities after a series of high-profile scandals related to fraud.
According to the agency, measures against microcredit organizations are introduced at a time when the authorities warn of increase in household debt on mortgage and consumer loans.
The recent report by the Cambridge Center for Alternative Financing says unsecured consumer lending via Chinese online platforms more than tripled last year to almost $140 billion.