According to a recent report, peer to peer loans in China hit a record high amount for the month of May topping $9.8 billion. In April the amount of P2P loans was pegged at $8.9 billion. The report in the Shanghai Daily also stated that dodgy platforms increased as well – a troubling problem for the internet finance industry. The news site stated that “problematic” platforms number 59 in May – up from 52 in the month prior with “over 62% being fraudulent sites that closed quickly”.
A researcher from Shanghai Ying Can Investment Management Consulting was quoted on the overall increase stating;
“The market felt optimistic about financial innovation after several P2P platforms announced they would be acquired by listed companies last month.”
Rules that should stem the tide of malfeasant platforms are expected later this month from Chinese banking authorities.