China tightens regulations on consumer finance companies

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China has tightened the screws on consumer finance companies, raising the capital limit for non-bank financial firms which provide small personal loans.

The measures announced by the National Financial Regulatory Administration on Tuesday will come into effect April 18.

The new rules stipulate that firms eligible to provide consumer loans — excluding those for home and car purchases — need to have a minimum registered capital of 1 billion yuan . That's triple the minimum amount required previously under 2014 rules, according to Reuters.

 

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