China's top regulator for internet financing on Wednesday ordered the country's online peer-to-peer (P2P) lending platforms to submit lists of deadbeat borrowers, in its latest efforts to crack down the fast-rising but increasingly problematic sector.
The Office of the Leading Group for the Special Campaign against Internet Financial Risks issued an order to P2P platforms, which are to provide a list of borrowers who have "maliciously escaped from financial obligations" by noon on Thursday, domestic financial news website yicai.com reported.
Many P2P platforms have gone out of business in recent months, with 157 having had trouble returning money to investors during July, according to financial news site 01caijing.com.
The notice from the regulator stated that data about fugitive borrowers will be sent to social credit departments. Personal data of malicious debtors will enter the Credit China database, which will allow the government to impose restrictions on them, including a prohibition on air travel and consumption restrictions.
