Nine Chinese Provinces Ban Online P2P Lending Operations

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A total of nine provinces in China have placed bans on online peer-to-peer (P2P) lending operations by platforms in their jurisdictions, following a heavy crackdown which as brought the sector to its knees.

These nine province-level administrative entities include:

  • Shandong province
  • Hunan province
  • Sichuan province
  • Chongqing municipality
  • Henan province
  • Hebei province
  • Yunnan province
  • Gansu province
  • Shanxi province.

Shanxi is the latest Chinese province to put the kibosh on P2P lending activities within its borders, issuing a directive in early January calling for all P2P platforms within its jurisdiction to complete “benign withdrawal” before the end of June 2020.

2019 was a dis­mal year for Chi­na’s P2P sec­tor, which has all but cap­sized in the wake of in­ten­si­fied pres­sure from reg­u­la­tors.

The num­ber of P2P plat­forms op­er­at­ing nor­mally in China has dropped from over 7,000 to un­der 600 since the start of 2019, with reg­u­la­tors push­ing for a to­tal over­haul of the sec­tor fol­low­ing re­ports of en­demic fraud. 

Related stories

Chi­na’s Lead­ing Fridge Maker Sells off P2P Unit for Just 2 Kuai Fol­low­ing USD$200 Mil­lion Ac­qui­si­tion

Sichuan Province Places Ban on P2P Ac­tiv­ity within Its Bor­ders

Chi­na’s P2P Plat­forms Drop from over 7,000 to un­der 600, Few Seen Tran­si­tion­ing to Mi­cro-loan, Con­sumer Fi­nance Op­er­a­tions

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