P2P lending in China enters into a regulated era

On 24 August 2016, four Chinese regulators jointly released the Interim Measures on Administration of the Business Activities of Peer-to-Peer Lending Information Intermediaries (the “Interim Measures”). The Interim Measures comprise the first comprehensive legal framework specifically regulating peer-to-peer lending activities in China.

Long awaited by the market, the Interim Measures are both in line with China’s banking regulatory policy and should help individuals and small and micro enterprises which are thirsty for capital to assess funding. On the flip-side, a larger number of existing platforms will likely have to change their business models as a result of the new rules.

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