biggest p2p lenders in china

P2P platforms usually don’t have to meet such requirements. They include cash-strapped small businesses seeking working capital, individuals without a credit history, and, more recently, leveraged stock market investors and home buyers in need of down-payments. “I have to move on no matter how upset I am, but a lot of the other investors are old and are suffering more.”. According to current regulations, P2P lending platforms operate as information intermediaries that can gather borrowers’ and lenders’ information and match their needs, but they are not allowed to pool capital. Connect with her on Twitter or via email: nicole.jao.iting@gmail.com. “I won’t invest in P2P platforms any more, I no longer trust them,” said Gao, who had been putting money into online loans for about four years. The number of failed Chinese P2P firms has surged since 2013, Note: Failed platforms include those that have been unable to repay investors, come under police investigation, halted operations, transformed into other businesses, or had operators flee with client funds. Philip Lagerkranser reports. Normally, savers have to wait for loans facilitated by the platforms to mature before getting their money back. HomeEquity Sells $77 Million of Reverse Mortgages to Concent... Turkey Central Bank Chief Said to Promise Greater Visibility. Authorities have yet to publish the time frame for formally registering P2P firms, meaning the sector is operating in a kind of regulatory limbo, according to Macquarie Capital’s Hsu. The authorities’ moves follow ongoing turmoil in the P2P lending industry. “Allowing compliant P2P institutions to transform into online microlending companies marks the first time that authorities have allowed them to become credit intermediaries,” said Yin Zhentao, a researcher with the government-backed think tank Chinese Academy of Social Sciences. More by Nicole Jao. That uncertainty is reflected in the stock market, where P2P lenders have slumped and initial public offerings from the industry have dried up. Read more: A Guide to China’s $10 Trillion Shadow-Banking Maze. If this prediction is true, within the span of two years China’s P2P industry will have shrunk by 85%. According to current regulations, P2P lending platforms operate as information intermediaries that can gather borrowers’ and lenders’ information and match their needs, but they are not allowed to pool capital. China’s P2P industry, the world’s largest, is one of the riskiest and least-regulated slices of the nation’s sprawling shadow-banking system. (Beijing) — Chinese authorities have further tightened controls on the peer-to-peer (P2P) lending industry, aiming to clear out as many P2P platforms as possible, according to an official document seen by Caixin. This site, like many others, uses small files called cookies to help us improve and customize your experience. At the end of last year, 2,667 P2P platforms had had difficulties meeting cash withdrawal demands, saw their owners abscond with investor funds, or were investigated by police, according to data (link in Chinese) compiled by P2P research platform Wangdaizhijia. In recent months, authorities have ramped up regulatory oversight of the world’s largest P2P lending industry. Only a handful of the 2,000 or so remaining firms are likely to endure, he said. P2P platforms usually don’t have to meet such requirements. Last month, China Banking and Insurance Regulatory Commission Chairman Guo Shuqing warned that any savings or investment product with promised returns of more than 8 percent is likely to be “very dangerous” and that investors should be prepared to lose all their money if advertised returns exceed 10 percent. The U.S.-listed shares of PPDAI Group Inc. and Yirendai Ltd., among China’s biggest P2P lenders, have tumbled 38 percent and 53 percent this year, respectively. China’s savers are rushing to pull money from peer-to-peer lending platforms. In some cases, savers are turning up at the offices of P2P operators to demand repayment, spooked by reports of defaults, sudden closures and frozen funds. Local regulators should guide certain P2P platforms out of the industry, particularly those whose borrowers have defaulted on loans or with high default risks — or those still small in scale, according to the document. Have a confidential tip for our reporters?

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