Xiaomi Accused of Providing Risky P2P Lending Products to Users

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Chinese smartphone giant Xiaomi stands accused of advertising risky P2P lending products to users, amidst a crackdown by Beijing on the online lending sector.

Xiaomi users have launched complaints that they purchased P2P wealth management products that were recommended to them via Xiaomi’s VIP channel or Xiaomi Yundong app, before the platforms responsible for providing these products succumbed to difficulties.

P2P platforms advertised included Guanjia Jinfu (管家金服) and Qiutian Caifu (秋田财富).

China is currently in the midst of a “clean-up” of the online lending sector which is scheduled to run for at least one to two more years, and has already seen a dramatic reduction in the number of platforms active in the country as well as the number of new platforms coming online.

Xiaomi said to Yicai that 429 users have made complaints in relation to P2P platform risk, involving a total sum of around 40 million yuan.

According to Xiaomi the figure of 40 million yuan is not the sum of confirmed losses, with some users having already recovered their funds.

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