JD.com's fintech arm boosts capital of microlending business as China's new rules loom

Photographer: SeongJoon Cho /Bloomberg

The fintech arm of online retailer JD.com Inc. has increased the registered capital of an online microlending business for the second time in four months to comply with a tighter regulatory regime that’s expected to come into effect by the end of the year.

The small loans industry, which is dominated by e-commerce and fintech giants including Ant Group Co. Ltd., Tencent Holdings Ltd. and JD.com, has been on notice of the impending changes since November 2020, when the People’s Bank of China and the China Banking and Insurance Regulatory Commission issued a draft of the Interim Measures for the Administration of Online Microlending Business.

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