JD.com fintech unit's IPO hits regulatory snag

Tough new draft rules rattle small-loans sector

Employees of online retailer JD.com pose for a photo in Beijing on Nov. 11: Tighter draft rules on microlenders have thrown the planned IPO of its fintech unit, JD Digits, into doubt. © AP

TANG ZIYI, Caixin

November 12, 2020 22:46 JST

China's tighter draft regulations on online microlending could cast a shadow over e-commerce giant JD.com'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.