China’s war on the credit boom
A campaign led by vice-premier Liu He to reduce the danger of uncontrolled lending could strangle the private sector.
Chinese President Xi Jinping right, and Vice-Premier Liu He aim to crack down on high levels of credit use. Getty
Like many small businesses across China, Zheng Weijun’s freight company had struggled to obtain credit from the state-dominated banking system.
But in 2018 the 12-lorry business discovered Fincera, a peer-to-peer platform in Hebei province that collected money from retail investors starved of returns and channelled it to borrowers, mainly small trucking and logistics companies.
Financial Times
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