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

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