China to tighten rules on banks' online lending, to ban the loans for risky investment

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China’s banking and insurance regulator has issued draft rules on banks’ online lending business which will ban the use of the loans for riskier investments and will impose upper limit on banks’ online consumer credit, in another move to rein in financial risks.

Bank loans issued online cannot be used to purchase property, stocks, bonds, futures, financial derivatives and asset management products and make other riskier investments, the China Banking and Insurance Regulatory Commission (CBIRC) said in a statement.

“If it is found that the purpose of the loan is illegal or not used . . .

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