Successful regulation of P2P defaults in China

CHINA ADVISORY - Report 02 Apr 2018 by Andrew Collier

China’s regulators have instituted stricter rules on the financial system. In online finance, they have effectively restricted the growth of peer-to-peer lending (P2P). This has helped to reduce the number of P2P defaults and is an example of how regulators are increasingly able to reduce risk in the economy overall. The success with P2P shows that China has the infrastructure to control credit growth but in other areas where lending continues to grow, the state lacks the political will to impact credit conditions.

However, one institutional shortcoming is the inability of the courts to handle defaults. We examine in detail the outcome of one default case and show that, despite its best efforts, it is difficult for the regulators and the courts to handle problematic P2P platforms once they are in default.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.