Online lenders risk being China's next bubble
Though online finance is smaller than the equity market, the industry is growing along with its exposure to risky investments
Beijing
WITH no sense of irony, China's online finance platforms are marketing themselves as a haven from gyrating stocks just as ratings companies warn the industry is brittle and failures could cause investors losses.
Among market leaders, Renrendai.com said in a text message to users that its service, which links lenders to buyers of furniture or entrepreneurs starting businesses, offers a "sedate shelter" from stock-market volatility. Jimubox.com sent a message to clients saying that equities are going "insane" and offering cash incentives for investment.
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