Lufax Holding, one of China’s largest peer-to-peer (P2P) lending platforms, has won regulatory approval to set up a consumer finance business as it restructures its operations amid a regulatory clampdown that has led to the implosion of the once-booming industry, reported Caixin.
Lufax, an associate company of financial conglomeratePing An Insurance (Group) of China Ltd., was given the green light by the China Banking and Insurance Regulatory Commission last week, according to astatement on the watchdog’s website. A source close to Ping An told Caixin that the new company will take over Lufax’s online lending business.
The Shanghai-based fintech company, in which Ping An owns a stake of more than 40%, is calling time on P2P lending after a three-year campaign by financial regulators to rein in the industry in the wake of a string of scandals that left millions of investors nursing heavy losses.
You must log in to post a comment.