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China's Weidai plans to apply for online microcredit license

Auto-backed financing solution provider Weidai Ltd. is preparing to apply for an online microcredit license in China in a bid to diversify its business.

The move comes as Chinese regulators are encouraging marketplace lending platforms to convert into online microcredit companies.

Weidai founder, Chairman and CEO Hong Yao said Dec. 12 that the company has been implementing initiatives to meet the government's compliance and transformation requirements.