Foreign news: China cracks down on margin lending

Banking Day staff
Three Chinese companies providing peer-to-peer lending services have announced that they will stop taking shares as security for loans. According to Dow Jones, the China Security Regulatory Commission is cracking down on margin lending and issued orders to lenders Miniu98.com, Xunqianwang and Quchaoguwang to get out of the margin lending market. Chinese P2P lenders had been offering investors higher leverage on margin loans than banks.