We pointed out that outstanding loans on P2P platforms rose 50% just last year to total Rmb1.49 trillion ($215 billion) – making the size of China’s P2P industry far bigger than in the rest of the world combined – and due to their lack of collateral, interest rates often are as high as 37%, with additional charges for late payment…..As a result, the peer-to-peer lending channel not only got clogged up, but went in reverse. In a recent article, the WSJ reported that a string of Chinese internet lenders have already shut their doors in recent weeks, stranding investors as the economy slows and regulators tighten controls over an unruly side of the fintech sector..
