China's P2P lending meltdown!!!
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Some of their run away P2P are regulated by the local government !! Is our FS safe?
https://www.cnbc.com/video/2018/08/07/chinas-p2p-lending-meltdown.html
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@vector-b It is China. How well regulated is their P2P? Without proper regulations, how can the investors be protected? Thus, not surprising it falls apart. At least in Malaysia, this P2P is regulated by SC. I remember SC closing one unlicensed P2P a few months ago.
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@vector-b Scary. Thanks a lot for posting this.
I think china's regulations came in much later. By that time, many P2Ps have already made it big. The government's in this region seem to be learning from these kind of incidents. They have passed already on strict regulations to P2P companies operating here.I believe I have already addressed this concern before, but just to emphasize again,
Funding Societies | Modalku is regulated in all the three countries we operate in. By MAS in singapore, SC in Malaysia, and OJK in indonesia. Also, we use a trustee account to hold our investor's funds, as opposed to the company's bank account. So, we have no authorization over the money.
We also have regular audits done by the various firms including the government, where they go through our security, accesses and many more to make sure investor's funds are protected from internal & external threats.This should help dissipate any outstanding concerns you may have on Funding Societies. Do feel free to post here in case of further questions.
Have a good week ahead!
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Thank for clearing out......
It is indeed scary, it is like one of the biggest news in china now.Anyways, is FS have some kind of audited annual report thing like this??
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@vector-b Not sure about other countries, but FS Malaysia should have considering the requirement of Companies Act.
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Here is some discussion on China's P2P. Very insightful on the philosophy taken by China's regulators.
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@toby said in China's P2P lending meltdown!!!:
Here is some discussion on China's P2P. Very insightful on the philosophy taken by China's regulators.
this is quite insightful. thanks for sharing. 900 P2Ps quit the market after china implemented the regulations. :O
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I had drank coffee with a friend who is stationed in China.
There are a few interesting notes from him.
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Some p2p companies may not have practice credit assessment so long as they are able to match the borrowers and lenders
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Celebrities had been invited to endorse their company to attract people to sign up as investors.
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Many people do not know what they had signed up for. As long as there is an opportunities to make money they are in.
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The regulators are not very strict about this. Compare to the regulation set by MAS which will make people cry, it is probably like in the park.
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This is very insightful.
Celebrities had been invited to endorse their company to attract people to sign up as investors.@Bendahara do you mean celebrities endorse the borrowing companies or the platform?
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@vamsi7 said in China's P2P lending meltdown!!!:
This is very insightful.
Celebrities had been invited to endorse their company to attract people to sign up as investors.@Bendahara do you mean celebrities endorse the borrowing companies or the platform?
Endorse the platform not the borrowing companies.
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@Bendahara I see. looks like a recipe for disaster. No wonder its collapsing. But the sad part is, investors are the ones who get hit the most with this meltdown.
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P2P lending in the Chinese economy
https://www.youtube.com/watch?v=slc0BYmhodc
