Activity soars in China's P2P online lending jungle
Platforms sold record 119.6b yuan of products in October even as defaults mount, as investors hunt for higher yields
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SINCE China's government announced guidelines for websites that link individual investors with borrowers, no detailed rules have been announced, activity has soared to a record and defaults are rising.
Online peer-to-peer (P2P) platforms sold a record 119.6 billion yuan (S$26.7 billion) of financing products in October, according to researcher Yingcan Group. That's equivalent to 23 per cent of commercial bank lending in the month, up from 5 per cent a year ago. While authorities said in July that Internet finance companies must provide sufficient disclosure and send risk reminders to customers, regulators have yet to issue specific laws.
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