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The Worrying Trend In Chinese P2P Lending

 1 min read / 

China's_online_peer-to-peer_lending_platforms_Launched_Failed_TMMChart.png

Trader’s remarks: Traditionally, the government has maintained tight control over lending, seeing it as the preserve of the banks. But with the banks focussed on big businesses, demand for P2P lending is such that China has blown past the level in the US, where the model was first developed. However, given the explosive growth, fraud and other problems have occurred. A significant number of P2P operators have collapsed lately, some due to fraud. Some platforms have also become a source of finance for the overbuilt property sector, raising investor risk.

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