Stricter rules to spell end of more online P2P firms

More online peer-to-peer lending companies will close after China's financial regulators imposed strict rules on the industry, to accelerate risk exposure and continually deleverage the financial sector, according to senior officials from the China Banking and Insurance Regulatory Commission (CBIRC).

The number of P2P companies, the lending amount and participants involved with this type of high-risk lending activity have declined for 15 consecutive months, and more than 1,200 P2P institutions have been closed, according to figures released by the CBIRC on Monday.

The banking and insurance regulatory body is considering to transfer the P2P online lending platforms into microcredit firms, CBIRC Vice-Chairman Zhu Shumin told reporters at a news conference.