Chinese Internet lenders have been affected by the slowdown in the economy. In fact, many of them have already filed for bankruptcy. According to data released by China’s Ministry of Industry and Information Technology (MIIT), the number of bankruptcies among internet finance companies reached 2,818 in 2018, up from 1,942 in 2017.
The MIIT said that the number of insolvency cases involving online lending platforms increased by about 30 percent compared to last year. The total value of loans issued by these companies dropped by nearly 40 percent.
The number of insolvency petitions submitted by online financial services firms rose by over 50 percent in 2018, according to the ministry.
Online lenders have become a major problem for the government. The industry accounts for about 20 percent of China’s banking assets.
A report published by the Financial Times suggested that the government could take action to regulate the sector.
The report stated that the government could impose stricter regulations on the industry, including requiring online lenders to hold more capital reserves.
The report also pointed out that the government may consider increasing its shareholding in some of the largest online lenders.
The report added that the government could also require online lenders to disclose their loan loss provisions.
The report concluded that the government should not wait until the industry collapses before taking action.
The report also noted that the government could use the country’s anti-corruption law to target executives at online lenders who engage in illegal activities.
The report also mentioned that the government could introduce legislation to ban the practice of offering short-term credit to consumers.
The report added that if the government does not act soon, the industry could collapse.
The report also mentioned the possibility of the government imposing a tax on online lenders.
The report concluded that China’s regulators need to step up efforts to prevent the industry from collapsing.