Chinese regulators have barred cosmetic surgery loans from structured debt products
It signals a warning shot for the nation’s large plastic surgery industry.
Both the Shanghai and Shenzhen stock exchanges have allegedly banned consumer debt that’s linked to cosmetic procedures.
The rule applies to new issues according to sources at Bloomberg.
It follows China’s booming cosmetic surgery industry under government scrutiny.
The industry has tripled in value in recent years
Many of the clients are younger people who can see what they would look like through smartphone apps.
The government has had the industry in its sights for a while, in particular, the estimated 60,000 clinics and 150,000 doctors who were operating without official licences as of 2017, according to Daxue Consulting.
Two months ago, the National Health Commission and several other government departments announced plans for a crackdown on illegal cosmetic surgery services in 2021, and the National Internet Finance Association of China issued a notice prohibiting financial institutions from co-operating with illegal cosmetic surgery institutions.
Spokespersons from the Shanghai and Shenzhen stock exchanges didn’t immediately respond to e-mailed requests for comment.
