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

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.