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China tells $151-bn unqualified micro-lending sector to stop 'cash loans'

Shares of US-listed Chinese online finance firms fell this week following the government crackdown

Reuters  |  Beijing 

The National Internet Finance Association of China issued a risk warning letter late on Friday telling "unqualified institutions" to immediately stop offering loans as Beijing steps up a crackdown on the micro-loan sector to fend off financial risks. The 1 trillion yuan ($151.5 billion) short-term, unsecured lending sector, known as "cash loan" in China, has been accused of charging exorbitant interest rates and violent debt collection practices. In Friday's warning letter, the Internet Finance Association, a government-backed industry group, said the ...

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First Published: Sat, November 25 2017. 11:05 IST