CrowdFund Talks - China



  • I guess not much investors over here interested in this market or invested in this market. Recently I come across this chart and thought is interested to share it here and create some awareness, a lot of China company used the name of Fintech to lure investor put in money, the default value had accumulate up to RMB120billion (US$18b), here is a chart to share.
    0_1531227817245_china.jpg


  • Community Manager

    https://www.businessinsider.com.au/china-p2p-lenders-crackdown-default-2018-7

    At one point China had over 6,000 P2P lenders operating across the country. However, according to Online Lending House, a data provider, that number had fallen to 2,000 by the end of February this year.



  • Hey @拿北七排 , do you mind translating the above diagram briefly?


  • Community Manager

    @拿北七排 thanks for sharing :) Are you highly involved within China's p2p ecosystem?



  • @kaeley-wn I used to work in China and see their P2P take off much faster and earlier than Singapore, but did not invest in any of them.



  • If you really study the P2P industry in China you will know that is a totally different way of growth compare to Malaysia. They started it before Government regulated, therefore it was grown too fast and lost control. Whereby Malaysia P2P started with tight control from BNM.

    One of the reason create a lots of problem was the platform "Guaranteed" the principal but they have no financial ability to pay back to investor when borrowers run away.

    The other main reason was due to hyper competitions, they throw a lots of incentive and promotion to market their platform, make their cost of acquire investors too high and operating cost higher than actual amount earn from fee, can't sustain with that.

    And their P2P allow lend to individual, whereby in Malaysia only allow company as borrowers. We have to know China is huge and they do not have an established nationwide personal credit system like other countries, therefore the default risk was high when platform borrow to individual.



  • @maybewei Generally this is a chart shown the problematic p2p platform in China. There are column with the name of platform, the registered address city, the date of the issues been discovered, the reason why they failed, and the amount involved.



  • Anybody got info to share om recent meltdown in dongguan ?



  • https://www.scmp.com/economy/china-economy/article/3006170/chinas-p2p-lending-market-could-be-decimated-year-amid

    Xue suggested that only about 100 platforms would survive under the new regulatory environment, out of the 1,021 P2P lending platforms still operating at the end of March.

    I'm surprised that 100 are expected to survive/be free of regulatory problems. Monkey see, monkey do, frauds were so commonplace, wouldn't all of them be tempted to all conduct it for growth back then?


 

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