P2P lending in China started in 2007 and has grown rapidly to become a US$60 billion industry in 2016. This comes at a time of great economic and technological development in China that has facilitated the creation of countless companies that facilitate financial processes for both companies and individuals. China's P2P lending industry has developed largely separate from the traditional finance industry and so have developed their own credit checking and operational platforms to capital for loans and provide attractive profit margins to investors. This is especially useful as there is a high demand for credit in China, as well as a short supply of institutions and companies that can cover this demand especially for financially excluded individuals and SMEs.
The P2P lending in China report released by Kapronasia in November 2014 studied the P2P market in China in terms of the challenges, the opportunities and future direction of the industry. The 2017 P2P Lending in China report follows up on that, highlighting the high demand for regulation and analyzing changes in the industry, including an overview of borrowers, a look at the way platforms control the loans’ risk and to what extent, and the ways in which some of these platforms have “turned rogue” and tried to find ways to scam their customers.
In addition to that, the report assesses new challenges faced by this industry including its first critical test as new P2P regulations come into play in August 2017 that will force industry consolidation as smaller players fail and others combine.