The Future of Peer-to-Peer Lending in China

27 Pages Posted: 19 Feb 2020

See all articles by Ding Chen

Ding Chen

University of Sheffield; University of Cambridge - Centre for Business Research (CBR)

Anil Savio Kavuri

Centre for Applied Macroeconomic Analysis

Alistair Milne

Loughborough University - School of Business and Economics

Date Written: January 23, 2020

Abstract

This 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, by 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 it’s facing substantial uncertainties.

Suggested Citation

Chen, Ding and Kavuri, Anil Savio and Milne, Alistair K. L., The Future of Peer-to-Peer Lending in China (January 23, 2020). Available at SSRN: https://ssrn.com/abstract=3524395 or http://dx.doi.org/10.2139/ssrn.3524395

Ding Chen (Contact Author)

University of Sheffield ( email )

17 Mappin Street
Sheffield, Sheffield S1 4DT
United Kingdom

University of Cambridge - Centre for Business Research (CBR) ( email )

Top Floor, Judge Business School Building
Trumpington Street
Cambridge, CB2 1AG
United Kingdom

Anil Savio Kavuri

Centre for Applied Macroeconomic Analysis ( email )

ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia

Alistair K. L. Milne

Loughborough University - School of Business and Economics ( email )

Epinal Way
Loughborough
Leicestershire, LE11 3TU
United Kingdom

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