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Chinese central bank and the top banking regulator released tougher rules for micro-lending companies, in a move to rein in risks to the financial system amid fears of rising defaults and deteriorating asset quality in a pandemic-hit economy.
The new rule set an 1 billion yuan registered capital threshold for micro-lenders and a 5 billion yuan registered capital threshold for micro-lenders that offer loans online across different regions.
The regulator will impose a cap on the amount of loans to be offered to individual borrowers as well as the leverage level . . .
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