U.S.-listed Chinese financial firms drop as China sets new rules

(Reuters) – U.S.-listed shares of Chinese financial firms slipped in premarket trade on Friday after Reuters reported that China’s regulators had circulated new rules to local governments to clamp down on cash loan firms.

PPDAI Group (PPDF.N) and Qudian Inc (QD.N) were down nearly 5 percent each, while Jianpu Technology (JT.N) fell 2.3 percent and China Rapid Finance (XRF.N) dropped 3.6 percent.

The regulations come a week after a top-level Chinese government body issued an urgent notice to provincial governments urging them to suspend regulatory approval for new internet micro loan companies, according to a Reuters report.