Deals

China's Micro-Lender Assault Threatens Path to U.S. Listings

Regulators reported to plan cleanup of online micro-lenders
Yangqianguan, LexinFintech among those aiming to trade in U.S.

The New York Stock Exchange (NYSE) stands in New York, U.S., on Friday, Oct. 27, 2017. Stocks climbed and the dollar rallied afterÂ the U.S. economyÂ saw its strongest back-to-back quarterly growth in three years, while bonds rose as speculation mounted about the next Federal Reserve chair.Photographer: Michael Nagle/Bloomberg

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By Bloomberg News

November 23, 2017 at 2:39 AM UTC

Updated on

November 23, 2017 at 10:00 AM UTC

This article is for subscribers only.

A new assault by Chinese authorities on the country’s cash micro-lenders threatens to stymie any new listings in New York, as regulators in Beijing escalate their campaign to reduce risks in China’s $40 trillion financial-services sector.

According to the International Financial News, China plans to purge the country’s 157 online micro-lenders, leaving only large state-owned companies and the biggest internet firms intact with licenses. Few of the existing lenders will survive, said the newspaper, which is managed by the official People’s Daily.