The survival guide for China's online lenders

Companies in the $150 billion sector face deep regulatory threats. They want to work with watchdogs and each other to tackle credit risks at source.

Working together with regulators is the key to the sustainable growth of China's burgeoning micro-lending sector, leading figures in the industry said on Tuesday.

Offering small, unsecured loans online has grown to become an Rmb $1 trillion $150 billion business in recent years. But fears about borrowers building up massive debts and resulting concerns about the stability of lenders have seen regulators step in, most recently with a move to ban new lenders in November.

Now, regulators have worked with established industry players to set up a new company intended to act as a self-regulator, improve transparency and cut the cost of funding for the sector....

¬ Haymarket Media Limited. All rights reserved.

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