China’s P2P Market Set for Another Tough Year but Potential Exists

China’s p2p lending market has been under extreme pressure in recent years as the number of platforms has shrunk to 343 from 2,680; scandals have plagued the market which saw individual investors lose their life savings and executives from some lenders disappear or get thrown in jail; the government released new regulations which require lenders to meet minimum capital requirements of $143mn which is the same requirement for commercial banks; online lenders can no longer raise capital from individuals and must rely on institutional funding; the new requirements will certainly limit the large growth rates seen in the past but there is potential around the corner; according to consultants Frost & Sullivan p2p lending is set to grow in value to $311bn by 2023, compared to $113bn in 2018. South China Morning Post