Loans via peer-to-peer platforms and other online lenders for equity purchases have fallen by RMB700 billion (US$113 billion) – a 61% drop from their peak – after the China Securities Regulatory Commission banned the practice on July 12, Bloomberg reported, citing a July survey it had conducted. “The new regulations are making the industry more disciplined and transparent, “said Wei Hou, a senior equity analyst for Chinese banks at Sanford C. Bernstein & Co. “There may be short-term pain of a number of small players closing down. But it’s good for the industry in the long term.” (For more on peer-to-peer lending in China, see CER’s in-depth report.)