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Download filePS14 Lessons from the rise and fall of Chinese peer-to-peer lending
journal contribution
posted on 2020-07-29, 13:19 authored by Chen Ding, Anil Savio Kavuri, Alistair MilneAlistair MilneThis paper reviews the development and assesses the future of Peer-to-Peer
(P2P) lending in China. Chinese P2P lending has expanded by a factor of 60
over the four years from 2013 and 2017. Consequently, it is now much greater,
both in absolute terms and relative to the size of the economy, than in any
other country. The industry though has been plagued by problematic often
fraudulent business models in what was, until 2015, effectively a regulatory
vacuum. A strict new regulatory regime is currently being introduced. However,
its introduction, especially the requirements on capital requirements and
registration, are substantially reducing the volume of P2P lending. We consider
the future of P2P lending concluding that it is facing substantial uncertainties.
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