Platforms controlled by Beijing Qiyuan Fortune Network Technology Co. are in a tight spot as an executive is accused of mismanagement and has reportedly disappeared.
According to a report in China News, the following peer to peer lending platforms; cmtouzi.com, naipinglicai.com, zaodianlicai.com, wanerjialicai.com, qianguan360.com, lexinglicai.com, xjinfu.com and huoniu360.com, simultaneously announced that a manager by the name of Fang Fan had created a situation where investors were unable to access their funds. The total amount in limbo was pegged at 1 billion yuan or approximately $145 million.
Beijing Qiyuan Fortune Network was said to have launched in 2015 quickly setting up a series of sister platforms. One of the online lenders, Cmtouzi, was said to still be operating and allowing investors to access their funds.
Of course the fact the company was unable to locate the manager did not instill much confidence. The report also said the P2P lenders targeted “college students, pregnant women and mothers.”
As we reported last week, the number of investors in Chinese P2P Lenders reporting problems with platforms was at a record high of almost 500,000.