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In Depth: It’s Curtains for China’s Local Financial Asset Exchanges

By Wang Juanjuan, Zhang Yuzhe, Cheng Siwei and Qing Na
2024年05月28日 19:48
The trading platforms have become too much of a risk to financial stability, with many degenerating into channels for illegal financing
The number of authorized regional financial asset exchanges in China dropped from 80 at the peak to 28 before the latest round of closures.

China’s regional financial asset exchanges (LFAEs) were once lauded as venues for local small and midsize companies and financial institutions to sell nonperforming assets. Now they are being shut down as part of a broader regulatory effort to stamp out illegal fundraising.

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