China's P2P purge will boost Lufax, Ant Financial
Add BT as a preferred sourceDeeperDive is a beta AI feature. Refer to full articles for the facts.
Beijing
CHINA'S P2P purge will boost the biggest players. After explosive growth, and little official oversight, authorities are now cracking down on peer-to-peer lending and other forms of online finance. The sector houses two of the world's most valuable financial startups, Lufax and Ant Financial, which have ties respectively to Ping An Insurance and e-commerce giant Alibaba. Driving out the cowboys should actually benefit the big two.
In the latest scandal, police froze assets at Ezubao, the country's largest P2P platform by lending figures, and said they took "coercive measures" against company officials, a phrase that usually means detention. The company had only been running since 2014 but had brokered 70 billion yuan (S$15.2 billion) of lending, according to Caixin magazine. Overall, nearly a third of China's roughly 3,800 peer-to-peer lenders are on the brink of closure or have fled with investors' money, according to industry-tracking site Wangdaizhijia.
Share with us your feedback on BT's products and services
