China introduces new guideline for P2P lending , cracks down on online financing in bid to protect investors

A map of China is seen through a magnifying glass on a computer screen showing binary digits in Singapore in this January 2, 2014 photo illustration. REUTERS/Edgar Su/Files

China published new draft rules for online financing firms in a bid to better protect investors after an inquiry earlier this month into suspected illegal activities by the country’s biggest peer-to-peer (P2P) firm unnerved the investment community.

Online platforms will not be allowed to pool investors’ money, illegally raise funds or harm the public interest, according to the rules released by the China Banking Regulatory Commission (CBRC) on Monday.

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter