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China Tightens Consumer Finance Regulation

CHINA PRESS

China has tightened regulation in the consumer-loan sector aimed at strengthening customer rights and interests and promoting high-quality development of the industry, according to the National Financial Regulatory Administration (NFRA). Under new rules, major investors in a consumer finance company must have a minimum CNY1 billion of registered capital. Financial institutions that want to become major investors must have a minimum CNY500 billion in total assets. Authorities have raised the shareholding ratio requirement for major investors from no less than 30% to no less than 50%. (Source: NFRA website)

MNI Beijing Bureau | lewis.porylo@marketnews.com

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