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China-based P2P lenders report USD 115 bln in losses due to scams

Monday 17 August 2020 11:47 CET | News

Peer to peer (P2P) investors based in China have reported losses of over USD 115 billion in unpaid debt, due to failed lending platforms.

The chairman of the Chinese Banking Regulatory Commission stated that the country’s regulators will be working cooperatively with police officials in order to recover (or at least try to) the funds. China has been conducting extensive investigations into the operations of P2P lenders because there have been many fraudulent schemes carried out by scammers exploiting the emerging sector, according to crowdfundinsider.com.

The number of P2P lenders operating in China has been reduced from about 6,000 to only 29, following the government-led crackdown. China’s P2P lending sector had managed to attract nearly 50 million investors at its peak. It had also acquired around USD 150.5 billion in debt outstanding, before the nation’s authorities began to launch investigations after numerous reports of fraudulent activities.

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Keywords: China, P2P lending, lenders, P2P lenders, scams, losses, unpaid debt, lending platforms, Chinese Banking Regulatory Commission, regulators, funds, investigations, scammers, fraudulent schemes
Categories: Banking & Fintech | Digital Identity, Security & Online Fraud
Countries: China
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Banking & Fintech