China’s P2P Lending Market Faces Extinction

China was once home to the largest p2p lending market in the world and now it faces extinction; a few high profile cases of fraud and the large hammer of the government has taken the market down to about 400 platforms when it was once more than 3,500; Super Credit CEO Darwin Tu tells the Wall Street Journal, “They basically changed the objective of their regulation.” he said. “I don’t think this is right.”; the government let the market run free from the start which allowed many of the platforms to take off; late last year regulators gave the remaining platforms up to two years to exit from the industry; this proposal would allow companies to continue operations if they became pure intermediaries, helping banks find small-business customers, or they can transition to providing small cash loans; both paths are tough for companies to accomplish scale and ultimately profit from which is why many believe the market will soon evaporate. The Wall Street Journal

Sign up for our Newsletters

Every morning the LendIt Fintech News team scours the globe for the most important fintech stories of the day in the daily Global newsletter.

The Europe edition comes out on Monday, Wednesday, and Friday featuring the most important stories in European and UK fintech.

The Latin American newsletter arrives in your inbox on Tuesdays and Fridays. This is a trilingual newsletter featuring stories in Spanish, Portuguese, and English.

Join 20,000 subscribers!