The new blacklist comes after a string fraudulent websites went dark and high-tailed it with lenders’ money. Over 100 such websites have absconded or went bust in recent years, with an estimated USD 110 million lost in under half a year.
In NBD’s report, Baidu mentioned it will work with authorities, insurance companies and the payment clearing association to come up with a list of reputable lending websites. It has reportedly removed both sponsored and non-sponsored P2P lending websites from its search results for the time being, but many still remain.
China’s New Business Daily (NBD) estimates the country currently has about 2,000 P2P lending websites. The trend exploded since it was introduced in 2011 as a way for average people without much credit history to get small personal and business loans. The government even encouraged P2P lending businesses to take up residence in its local tech district, promising perks like lower rent and cash rewards. But regulators have left these services largely untouched despite many experts’ advice, resulting in widespread fraud.
Baidu provides a range of services including a Chinese language search engine for websites, audio files and images. The company offers 57 search and community services including Baidu Baike, an online collaboratively-built encyclopedia and a searchable keyword-based discussion forum.
Check out our Cross-border Ecommerce Research section here for more info on specific ecommerce facts & figures, preferred payment methods, risk and fraud, as well as ecommerce legislation & regulation in China.
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