Beijing’s P2P owners and senior executives hit with travel ban as China cracks down on online lending
- Chaoyang district posts notice on social media account banning staff from peer-to-peer lending platforms from leaving China’s capital city without approval
- Post later deleted, but highlights China’s willingness to clean up the sector after the rapid development of often risky online lending
Owners and senior executives of peer-to-peer lending platforms in the Chaoyang district of Beijing appear to have been asked not to leave China’s capital city pending an investigation into their business practices, according to the district’s Internet Finance Association.
The notice, published on the association’s official social media account on Thursday, requires “senior managers” and controllers of peer-to-peer (P2P) platforms registered in Chaoyang district not to leave Beijing without written approval from the district’s Financial Service Office until the end of May. The post was later deleted without an explanation.
An industry insider, who declined to be named, said the association, which does not have the legal authority to restrict travel, may have crossed the line in making such an order.
“It’s also very hard to implement the ban,” the insider said.
I just saw the notice today. We were under a three-day investigation last week, the result hasn’t come out yet but the investigators have left. Our company has returned to normal operations now.
The district’s Financial Service Office and Internet Finance Association did not respond to repeated calls and emails requesting comment.
