The development of consumer lending in China has hit a speed bump as the P2P industry falls foul of a regulatory clampdown on borrowing standards. Investors have also drifted away with a gradual fall in the percentage of consumers willing to put their savings into such products.
The development of consumer lending in China has hit a speed bump as the peer-to-peer industry falls foul of a regulatory clampdown on borrowing standards. A shake-out will continue as the government tackles debt risks in the economy. Of the 66 platforms surveyed by FT Confidential Research, 10 said they might close their businesses because of difficulties in meeting compliance and in controlling an increase in bad loans. Among the platforms, which match lenders with borrowers online, 41.4 per cent of those in second- and third-tier cities said business had fallen in the first quarter compared with the end of last year. “The days of explosive growth are over,” said Xie Ming, owner of Rongda Investment, a lending platform based in Chengdu, Sichuan province.
https://www.ft.com/content/9fe5391e-470b-11e8-8ae9-4b5ddcca99b3
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