China P2P Lending Rules Said to Include Caps on Amount Borrowed

China Yuan RenmibiA report in ChinaNews is saying The China Banking Regulatory Commission (CBRC), along with partner agencies, will release rules regarding online lending that will include lending caps. According to the report, individuals will be able to borrow up to 200,000 CNY (USD $30,000) from any one peer to peer lending platform and nor more than five times that amount from all platforms.  A similar constraint is said to be in place for business borrowers with the cap at 1 million CNY from a single platform and five times that amount in total from all platforms.

Luo Mingxiong, president of Beijing Jingbei Crowdfunding Technology Co and Director of the Institute of Internet Finance of Shanghai Jiao Tong University, was quoted on the proposal;

“At present, some P2P platforms may see ‘big orders’ for money, lending tens or even hundreds of millions of yuan to some real estate enterprises or other capital-intensive sectors, instead of supporting individuals and small and micro-sized enterprises. They will need to adjust their business once the borrowing caps become official.”

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