Financial regulators have launched an investigative campaign to find managers of online peer-to-peer (P2P) lending platforms that have deliberately defaulted on debt payments to force their company’s closure, Caixin reports.
A notice published by the Office of the Leading Group for the Special Campaign Against Internet Financial Risks on Wednesday called on local authorities to report comprehensive lists of all such “malicious, delinquent borrowers” who have defaulted since July start.
The office also asked for details regarding the size of the loan payments and current whereabouts of the borrowers. The authorities were given a deadline of midday Thursday.
The campaign, intended to “severely crack down on vicious debt evasion,” comes as China’s online P2P market is experiencing a wave of liquidity concerns. According to research firm Wangdaizhijia, at least 165 P2P platforms reported difficulties such as missed payments or police investigations in July, up almost 200% from the previous month.