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
