Chinese investors are losing $ 1.2 billion in lending sector online P2P




The private business sector lending Peer to Peer P2P through the Internet in China, the world’s largest, and is its principle to lend to business and consumers money of savers via the Internet, but it is at the same time one of the most business segments unorganized.

He noted Henry between the Managing Director of the company CreditEase, which is considered one of the largest platforms in China to the seriousness of this sector and the clarification of the heavy losses suffered by the sector so far.

He spoke of the Conference LendIt Europe in the British capital London last week on Chinese investors to lose about $ 1.2 billion, and most of these investors are individuals inexperienced and who enter this area and put their money in the Chinese platforms for lending Peer to peer in order to achieve a quick and savings and that over the the past 18 months.

A report of the Financial and Banking Morgan Stanley to it and so the month of December of last year, there were about one million investor in a peer-to-peer sector P2P in China which is a big increase compared to the numbers the same month a year earlier, which pointed to the presence of about 200,000 investor and that there is a rapid growth in this sector.

The report pointed out that in the event of loss of ordinary investors in the United States or the United Kingdom for hundreds of hundreds of millions of dollars a sensation in the world it will happen, but the same thing happening in China could make a much larger story and put it under a microscope.

The report added that most of the missing money is not the reason behind the loss of the bad loans that got on those platforms, but with the same platforms elusive.

He said he was there among the more than 700 online lender in China have disappeared this year and came out of this sector, and it’s up for two main reasons: the escape of platforms and of the fact that people processing platforms and accepting deposits and then close the podium and disappearance.

The second reason is due to the self-financing and is done by the owners of the platforms by taking deposits and exploitation of the flow of their personal interests and their projects instead of delivery to borrowers real.

And looks like a field of peer-to-peer lending in China is now time for the era of the Wild West in terms of absence of organization and is available to all and without controls where thieves contain along with real entrepreneurs.


In: Technology & Gadgets Asked By: [15459 Red Star Level]

Answer this Question

You must be Logged In to post an Answer.

Not a member yet? Sign Up Now »