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China lays down the law on online lenders, vows to 'cleanse' market

Online platforms should not take deposits, pool investors' money, or guarantee returns, regulator says

Published Mon, Dec 28, 2015 · 09:50 PM

Shanghai

CHINA's banking regulator laid out planned restrictions on thousands of online peer-to-peer lenders, pledging to "cleanse the market" as failed platforms and suspected frauds highlight risks within a booming industry.

Online platforms shouldn't take deposits from the public, pool investors' money, or guarantee returns, the China Banking Regulatory Commission said on Monday, publishing a draft rule that will be its first for the industry.

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