The China Banking Regulatory Commission appears ready to issue new guidelines that will cap P2P lending and curtail some of the risk inherent in the sector.
Chinese regulators are considering new rules to cap P2P (peer-to-peer) lending ito control risk and protect investors, eight months after it initiated a campaign to "clean up" faulty P2P lenders, according to Chinese media reports.
An individual lender can provide loans of no more than RMB200,000 (US$29,976) on one P2P platform, and can lend no more than RMB1 million (US$150,000) in aggregate across different P2P channels.
For other non-individual legal entities, the cap is RMB1 million on a single platform and RMB5 million across all P2P channels, according to Chinese media reports citing an insider.
These rules are likely included in a new regulation to be jointly released...
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