INSIGHTS | Predatory student loans in China
Sep 2, 2019
More than half of all companies have been pruned from the peer-to-peer (P2P) lending market after regulators introduced tougher rules aiming to curb illegal and risky lending practices.
The tightened regulations over the past three years, including introducing a new trial registration program that will require platforms to register on a monitoring system, has not only led to the collapse of many smaller platforms but larger players are feeling the pressure as well.
However, despite the country’s on-going efforts to clamp down on illegal lenders, predatory lending platforms that haunted Chinese school campuses in 2016 have resurfaced.
Predatory student loans again became one of the trending topics on Weibo in the past few weeks, after Chinese media National Business Daily reported (in Chinese) earlier this month a large percentage of online lenders still have loan operat