Dianrong is looking to raise $100 million to cope with a regulatory crackdown that's already led the firm to lay off as many as 2,000 workers:
Dianrong is attempting to raise the funds from new and existing investors including Singapore sovereign fund GIC and Standard Chartered Private Equity. The new capital is intended to help the firm survive until regulators begin accrediting a select number of P2P lenders.China's clampdown on alt lenders has taken its toll and Dianrong's attempt to raise the new funds may be a shot in the dark as regulatory uncertainty lingers.
Amid a wave of defaults, fraudulent practices, and investor anger, authorities have taken steps to curb the industry. Incumbents' unwillingness to lend, a growing cash-rich middle class, and an absence of regulatory oversight helped China's P2P lending space gain considerable traction. However, that same absence of legal oversight has seen a raft of duplicitous platforms emerge.
Regulatory efforts to clean up the space are welcomed, but continued limbo will hurt those that have invested in P2P platforms. New licensing requirements will result in fewer players surviving: Analysts at China International Capital CorpThis is likely to ensure that the P2P industry in China will be populated by more legitimate platforms, while also making it easier for authorities to weed out bad actors.
However, authorities need to act fast as the continued lack of clear-cut guidance will hamper players of all sizes, which will not only slow down the progress of these firms, but also place consumers who've invested in these platforms at greater risk.1. Sign up for the Fintech Briefing to get it delivered to your inbox 6x a week. >>pass to Business Insider Intelligence and gain immediate access to the Fintech Briefing, plus more than 250 other expertly researched reports.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Aramco sets record with $100 billion demand for landmark bondOrders for Saudi Aramco's debut international bond topped $100 billion on T...
Read more »
Uber looks to raise about $10 billion in IPO, seeks valuation of up to $100 billion--reportsUber Technologies is looking to offer around $10 billion worth of stock in its initial public offering, with most of the shares being sold directly by the...
Read more »
Uber Aims for Public Valuation of as Much as $100 Billion, Below ExpectationsUber Technologies is aiming for a valuation in its impending initial public offering of as much as $100 billion, below previous expectations, after its competitor Lyft stumbled in its early days of trading as a public company.
Read more »
Aramco sells $12 billion bonds out of record $100 billion demandSaudi Aramco is set to raise $12 billion with its first international bond issue...
Read more »
A $100 bln price tag still in Uber’s driving rangeThe ride-hailing app’s mega-IPO could value it at nine times revenue. That’s less than the multiple Lyft achieved, but its stock has tanked. Both firms are burning cash and face an uncertain road to profitability. Uber’s diversification may help it survive the long journey.
Read more »
Elizabeth Warren unveils new proposal: 7% tax on corporations' profits over $100 millionMassachusetts Sen. Elizabeth Warren, known for her longstanding and ambitious campaign to even the wealth scales in the country, unveiled another bold proposal Thursday.
Read more »
Analysts don't know what to make of Uber's $100 billion valuationAnalysts got their first look at Uber's financials on Thursday but they still are unsure whether they justify a $100 billion valuation.
Read more »
Elizabeth Warren wants to raise $1 trillion with a new tax on corporate profits over $100 millionThe surtax would prevent Amazon and other companies with profits exceeding $100 million from wiping out their tax liabilities.
Read more »
Warren calls for new tax on corporationsSen. Elizabeth Warren unveiled a plan to impose a 7 percent surcharge on corporations making more than $100 million, the second major tax proposal of her campaign
Read more »