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Economy

Chinese online lender delinquencies wipe out $4bn this year

Outrage mounts as government hastens to nip financial risks

Security personnel surround a woman in Beijing on Monday during protests against peer-to-peer lending losses.   © Kyodo

SHANGHAI/BEIJING -- More than 300 internet lenders in China have failed this year as the government presses forward with deleveraging efforts, defaulting on 30 billion yuan ($4.39 billion) in repayments to spark investor outrage and depress the stock market.

Groups of demonstrators headed to Beijing's posh financial district on Monday to protest losses from peer-to-peer lenders, drawing a heavy response by the police. As of Tuesday morning, the area was under lockdown as police vehicles cut off access to offices of state financial regulators. Security forces waited on standby in large buses, on the alert for any unexpected activity.

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