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在线翻译:
szdaily -> Business_Markets -> 
Firms scrap plans for micro-loan business
    2017-11-24  08:53    Shenzhen Daily

A MENSWEAR firm and a leading maker of POS terminals said late Wednesday they had given up plans to set up micro-loan units, one day after policymakers took steps to tighten supervision of the lightly regulated sector.

Zhejiang Busen Garments Co., whose shares are traded in Shenzhen, was the first listed firm to announce the termination of such a plan since the government Tuesday halted approval for the setting up of new Internet micro-lenders.

Shenzhen-listed Nexgo Inc., among the largest manufacturers of POS terminals in the world, soon followed with a similar announcement.

In a commentary Thursday, the People’s Daily said the rapid increase in so-called payday loans poses an alarmingly large amount of hidden risks.

With the bar for borrowing low and advertising exaggerated, some people are likely to “blindly borrow” from those platforms, resulting in a large number of subprime loans, according to the commentary. Young borrowers and financially illiterate people with low incomes were particularly vulnerable, it added.

Companies providing small loans, especially over the Internet, have expanded rapidly in the past year, partly due to loose government rules. The rush to supply credit has also led Chinese micro-loan firms such as Ant Financial-backed Qudian Inc. to raise funds in New York.

China’s top home appliance retailer Suning Commerce Group Co. has given out 26 billion yuan (US$3.94 billion) in nearly 20 million small loans since it launched its lending business in 2015, the company said.

A private estimate puts the amount of online consumer loans at 1.14 trillion yuan. (SD-Agencies)

 

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