“Top regulators don’t necessarily see the bigger picture,” said the banking regulator based in a northern city. P2P firms in each district had to submit accounts monthly, quarterly and yearly to the bureaus. No former P2P platform has yet received a microlending license except for those who already held such a license themselves or through their related companies, sources with the knowledge of the matter said. But in other provinces, and cities such as Beijing, P2P companies are still operating. Regulators have stamped out the vast majority of China’s scandal-ridden peer-to-peer (P2P) lending industry over the last few years, but are facing challenges cleaning … In 2016, P2P platforms in China loaned $61.5 billion, versus a total 12.65 trillion yuan ($1.78 trillion) in loans made by commercial banks, according to central bank data. Regulators and law enforcement will try their best to recoup the money, he told China Central Television Friday (Aug. 14), per the report. Mass protests, such as one in Beijing last year, are “likely to lead to the cutting-off of the whole industry,” the person said. If you haven’t downloaded the app, please click here. In Depth: Is China’s Once-Booming P2P Sector Facing a Dead End?
Get our hottest stories delivered to your inbox. CROSS-BORDER MERCHANT FRICTION INDEX – NOVEMBER 2020, Uber Eats Anticipates Continued Demand After Pandemic, Cloud Cybersecurity Platform SentinelOne Nets $267M; Now Valued At Over $3B, Walmart's Flipkart Adds Alcohol Delivery In Two Indian States. The actual operation of P2P online lending institutions across the country has dropped from about 5,000 during the peak period to three at present. It provides feedback on their plans and runs a sandbox for testing new models, said the paper. China’s P2P lending sector had managed to attract nearly 50 million investors at its peak. In principle, the platforms are not themselves lenders and serve only as intermediaries that match lenders to borrowers. P2P lending has become a significant source of funds for small firms and consumers in China. All Rights Reserved. China’s peer-to-peer (P2P) lending sector, once 6,000 businesses strong, has been reduced to fewer than three dozen as the government tightened regulations, leaving … Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Gavin Cross (gavincross@caixin.com). BEIJING/SHANGHAI (Reuters) - Overburdened Chinese regulators have left the peer-to-peer lending industry to poorly staffed local governments, according to ex-regulators, threatening the survival of an important credit mechanism once seen as crucial for the country’s economy.