For firms that manage more than 5 billion yuan (US$711 million) in outstanding longer-maturity loans, the grace period can be extended by up to two years, according to the notice. Photo: AFP
P2P: China’s once-booming lending industry must close within two years, government notice says
- Once seen as an important credit mechanism, it has been rocked by pyramid-scheme scandals and absent bosses, sparking public anger as well as a government crackdown
- Only 427 existing peer-to-peer (P2P) firms were still operating by the end of October, down from 6,000 at their 2015 peak
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Peer-2-Peer
For firms that manage more than 5 billion yuan (US$711 million) in outstanding longer-maturity loans, the grace period can be extended by up to two years, according to the notice. Photo: AFP