China announced new rules to tighten regulation of the country’s P2P (peer-to-peer) lending sector, imposing a strict lending cap to lenders on the country's 2,349 P2P platforms.
As previously reported by China Money Network, individual lenders can lend up to RMB200,000 (US$29.976) on a single P2P platform, while lending no more than RMB1 million (US$150,000) in aggregate across different P2P channels.
For corporations and other non-individual legal entities, the cap is RMB1 million on a single platform and RMB5 million across all P2P channels.
The limits are set in connection to China's relevant laws on illegal fundraising, which have stringent control on taking deposits outside of the banking system. It means P2P lenders will likely avoid facing prosecution if they adhere to the limits.
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