P2P lending platforms experience ‘explosion of thunder’
Missing bosses, investigations and problems with cash withdrawal mar online lending platforms, says industry source
In the 50 days since June, there are now 163 P2P online lending platforms that are having problems with cash withdrawal or are going into liquidation, according to data released by WDZJ.com, an industry portal, The Paper reported.
Bosses have gone missing or are being targeted in investigations in what insiders are now calling an “explosion of thunder,” referring to PSP internet loan trouble.
On average, there are about 3.26 such companies, per day, that have “exploded” since June.
The 163 problematic platforms are concentrated mostly in Zhejiang, Shanghai and Guangdong province (55, 51 and 27 respectively), accounting for more than 80% of the total problematic firms.
By the end of June, there were a total 2,835 P2P online lending platforms in China, with 60.6% of them located in Guangdong, Beijing, Zhejiang and Shanghai.
More than 50 million people have borrowed from these platforms, with a per capita borrowing rate of 22,789 yuan (US$3367.3 dollars).