China’s Hebei province imposes total ban on P2P platforms
- Hebei is China’s second province to shut down P2P lenders after Hunan as the government continues its clean-up act
- None of the 35 platforms that applied for administrative tests met the regulations, provincial government says in statement
China’s Hebei province has shut down all peer-to-peer lending platforms, underlining the latest effort by regulators to clean up the industry rife with fraud and mismanagement.
None of the 35 platforms in the region that had applied for administrative checks to continue their business met the relevant regulations, the Hebei government said in a statement on its official website on Friday.
P2P companies that were not subjected to the check will be deemed as conducting illegal businesses and be banned as well, it said. The closure follows an earlier exit of 93 companies from the market, a separate statement said.
About 6,000 P2P platforms have missed payments to investors, mostly individuals, stolen funds and suddenly suspended operations, putting more than 214 billion yuan (US$30.7 billion) of investments at risk.
