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Caixin fintech unit's IPO hits regulatory snag

Tough new draft rules rattle small-loans sector

China's tighter draft regulations on online microlending could cast a shadow over e-commerce giant's fintech unit ahead of its Shanghai IPO.

Online microlending has been the major force driving the revenue growth of Jingdong Digits Technology Holding, or JD Digits, for the past few years. Like many of its peers, the fintech giant's rapid expansion was partly thanks to lax supervision of online microlending.

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