Lender probed as trading resumes

Business | Tereza Cai and Bloomberg 23 Oct 2019

Shares of 51 Credit Card (2051), mainland credit card management and peer-to-peer lending platform, spiked 12.99 percent to HK$2 as it resumed trading yesterday.

The company emphasized its business operations and financial positions remain normal and healthy, and assets of the group have not been seized or frozen.

It said it had learned that its office located in Hangzhou, Zhejiang, was under an on-site investigation carried out by relevant government authorities.

Chairman, chief executive, executive director, and controlling shareholder, Sun Haitao, and executive director and chief financial officer, Zhao Ke, are assisting with the investigation at the request of the relevant government authorities, along with some other employees of the group.

Sun also posted an apology on his Chinese social media platform Weibo.

The announcement followed after the company was suspended from trading at 1.50pm on Monday after its shares plunged almost 35 percent to HK$1.77.

Authorities in Beijing are working with local officials on guidelines that would convert qualified online lenders into small-loan companies, Zhu Shumin, vice chairman of the China Banking and Insurance Regulatory Commission, said Monday. Firms that don't fulfill current requirements will be pushed to exit the industry, he said, without providing more details.

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