China’s banking regulator formalized rules that will force Ant Group Co. and other online lenders to have more skin in the game when they make loans with banks, dealing a blow to a burgeoning business that helped drive Chinese consumer spending in recent years.
Starting in 2022, internet-lending platforms in the country will have to fund at least 30% of every loan they make jointly with commercial lenders, which include banks, trust companies, and finance companies. Individual banks will also be subject to new caps on how much they can lend together with online partners, according to regulations published on Saturday by the China Banking and Insurance Regulatory Commission.
Several analysts on Monday said the rules are aimed at large technology companies including Ant and WeBank, a large online lender backed by Tencent Holdings Ltd. Both have become big originators of unsecured loans to individuals and small businesses by working