Chinas banking regulator has instructed the countrys four state-owned bad loan managers to deal with failing peer-to-peer lending platforms, a sign of Beijings concern about possible financial and social instability from the shadow banking sector.
Hundreds of P2P platforms have collapsed in recent months due to borrower defaults and fraud by platform operators. The defaults have sparked panic among investors, some of whom have sought early redemption of their investments.
Last week, police locked down Beijings financial district to prevent protesters from approaching the headquarters of the China Banking and Insurance Regulatory Commission.
On Wednesday, the agency convened a meeting with senior executives from Huarong, Cinda, Orien…
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