In a joint statement the China Banking Regulatory Commission, Ministry of Public Security, Cyberspace Administration of China and Ministry of Industry and Information Technology said that some of these firms are running Ponzi schemes and raising funds illegally, the Shanghai Daily said.

beneath the fresh regulations an individual cannot borrow more than 200,000 yuan (US$30,072) from single platform, up to a maximum of 1 million yuan, the news site said.

Corporate borrowers can now borrow 1 million yuan per platform and 5 million in total, it said.

Peer to peer firms cannot seize public deposits, market riches management products or provide guarantees for investment principal beneath the fresh rules, the Shanghai Daily said.

In April, state-owned news agency Xinhua reported that tighter regulation was already affecting the industry, with only four fresh firms set up in the previous month. The total number of platforms had fallen for four consecutive months, Xinhua said.  

A recent survey by Accenture found that China now leads the earth in financial technology investments.

Investments in Asia-Pacific financial technology ventures, primarily in China, reached $9.62 billion by 31 July, more than twice the $4.26 billion invested in the region in every of 2015, Accenture said. 

This surpassed North America, which saw $4.58 billion in financial technology investments up to 31 July, and Europe, which attracted $1.85 billion in the same period, Accenture said.

“However, deal volume remains higher in North America and Europe, as the Asia-Pacific increase is due to big investments in a few select fintech companies in China,” the report said.