Earlier this month Hongling Chuangtou Ecommerce, which operates my089.com P2P lending site, disclosed that an $11 million (70 million yuan) debt had gone bad. Now the platform explains it will publicly trade shares by using a “backdoor” listing with a listed clothing company in Fujian Province, according to the company’s founder Zhou Shiping. The company expects a valuation of 50 billion yuan. Total transactions on the P2P site were 14.7 billion yuan in 2014.
According to a report in ECN, Hongling’s bad debt totaled 100 million yuan in 2014 an industry high for the peer to peer lending industry in China.
As for the lost 70 million yuan, management is taking legal action to recoup the loss said to be the result of a a loan to Senhai Gardening Landscape Company.