For just $10 a month or $100 a year, please consider. Aside from investing with platforms that were not well-regulated, some Chinese investors fell prey to platforms that promised returns that were too good to be true. They were also required to register with local financial regulatory authorities by June of 2018. “When regulations come in, a lot of P2Ps won’t survive.”, — With assistance by Alfred Liu, and Jun Luo, Senate Takes First Step to Vote on Shelton Fed Confirmation, Mexico Holds Key Rate in Surprise Pause to Easing Cycle. You should be wary of any investment that promises dramatically higher returns than comparable opportunities.

While SOE juggernauts in China may be too big to fail, the P2P lending sector was too big to prevail. The company cannot easily meet Beijing's requirement of minimum registered capital of RMB 1 billion for an online microlending license. In 2006, China’s first online P2P platform launched and there were 2,388 active platforms at the start of 2017. It is important to diversify your risk when investing in crowdfunding campaigns, as well as with other opportunities. In Singapore, there are a number of platforms that are approved by the government, including Funding Societies. The nation’s P2P platforms, which facilitate loans from mostly individual investors to borrowers willing pay high rates of interest, have about 50 million registered users and 1.3 trillion yuan ($192 billion) of outstanding loans, which yielded an average 10.2 percent in the first half of the year, official figures show. China’s peer-to-peer (P2P) lending sector, once 6,000 businesses strong, has been reduced to fewer than three dozen as the government tightened regulations, leaving billions in loans unpaid. A recent wave of failed P2P lending platforms in China has caused many investors to lose a lot of money. Even after you’ve found few platforms you want to try, it is even more important to assess each investment opportunity’s risk profile. An easy way to avoid the pitfall of choosing a crowdfunding platform that makes unrealistic claims is to thoroughly research various platforms in order to understand reasonable returns based on the characteristics of your investment, including size, duration and risk. The China Banking and Insurance Regulatory Commission reckons that P2P lenders still owe depositors about RMB 800 billion (US$115 billion). Sign up for our email newsletter and keep up to date with our latest insights. Investors lack confidence and funds are flowing out “significantly,” the company said in a statement on Wednesday. China’s P2P lending industry, which is the world’s largest with total outstanding loans of approximately S$200 billion, experienced rapid growth in the past decade. A few Chinese investors had their entire retirement savings invested in one P2P platform, which completely exposed them to the default risk of the platform and its campaigns. Have a confidential tip for our reporters? What Happened to China’s P2P Lending Industry? Focusing on the highest possible returns may have also led investors to discount the importance of diversification. “There’s no perfect way for the government to get rid of all those bad ones because there are thousands of them online. Brexit talks go into next week, with EU and UK divided. Updates with details and quotes from third paragraph.

Ping An-backed Lufax has since pivoted to consumer finance - the business of lending for the purchase of products including mobile phones, electronics and home appliances - while continuing to grow its online wealth management business. We also get your email address to automatically create an account for you in our website.

Online lending would have to be done through other channels, regulators said. Asia Stocks Set to Follow U.S. Lower: Bonds Jump: Markets Wr... Argentina Hikes Rates After Prices Surge Past Expectations. Analysts at China International Capital Corp. estimated on July 13 that no more than 200 firms, or about 10 percent of existing platforms, will still be around in three years. With proper due diligence and analysis, investors in Singapore can continue to invest using crowdfunding platforms with confidence. Whether you are investing through crowdfunding sites, online brokerages or any other investing platforms, it is important to carefully review each opportunity to understand its risk profile in order to find a level of diversification that works for you. “The industry is going through an elimination process,” Chen said.

Data as of July 20, 2018. This was first published at Value Penguin’s website, “Lessons for Investors Following China’s P2P Lending Nightmare“. While the fallout of China’s P2P lending industry’s recent troubles has very unfortunate, investors in Singapore stand to learn a lot from these events.

While that has triggered bouts of panic among users of smaller P2P platforms, there’s little evidence that the turmoil has spread to more systemically important parts of China’s financial sector. The shakeout in China’s $192 billion peer-to-peer lending industry is accelerating at a rapid clip. Jinyinmao, a Shanghai-based P2P lender, was one of the latest platforms to close down this week. At least 118 platforms have failed this month through early Friday, according to Shanghai-based Yingcan Group, whose tally for July stood at 57 just three days ago. Meanwhile, China's tech giants, which can easily meet the high capitalization requirements for an online lending license, sense an opportunity. Please enter your username or email address to reset your password. They're also known commodities to Beijing. Millions of investors have lost their life savings in fraudulent or failed lending platforms. China’s P2P lending market could soon face a second reckoning as Beijing prepares to adopt stricter licensing requirements. There are just 29 P2P lenders left in China today, compared to 6,000 when the crackdown began in 2015. China confirms ban on some Australian timber imports, Trolls get creative after WHO allegedly censors Taiwan, PAP v PAP: “The PAP can do better on the policy side if it gets its politics right”, Man sentenced to death for brutal murder of pregnant wife and their four-year-old daughter, Heng Swee Keat points the importance of resuming flights to cities with low COVID-19 incidences; while SIA opens non-stop flights to New York, Porsche Design and AOC unveil new ‘Porsche Design AOC AGON PD27’ gaming monitor, Parti Liyani case: Liews did not check Parti's bags even when they alleged to have suspected Parti of theft, Law Minister uses his parliamentary privilege to smear Parti Liyani’s image and cast doubt on High Court’s decision, says Reform Party chief Kenneth Jeyaretnam, SPH CEO receives more than $1.3m salary while company loses money, PAP cadres vote Ng Chee Meng out of party's CEC Top-12 after he lost Sengkang, PM Lee fails to address how shortcomings in the criminal justice system can be remedied without a public COI, Parti Liyani's case: Minister Shanmugam says police are "very stretched", cites low officer to population ratio, COVID-19 test at HK airport costs S$87 while Changi airport charges S$300. Data as of June 2018. “Some borrowers have lost their intention and ability to repay their loans, leaving a huge impact on our operations and drying up our liquidity.”, The number of failed Chinese P2P firms has surged since 2013, Note: Failed platforms include those that have been unable to repay investors, come under police investigation, halted operations, transformed into other businesses, or had operators flee with client funds. Regulators need not fret that these firms will collapse overnight, while they are much less likely to engage in unscrupulous behavior than shadowy P2P lending platforms. Some investors lost hundreds of thousands of dollars, which represented their entire retirement savings. Once your account is created, you'll be logged-in to this account. Oil Drops After U.S. Some investors lost hundreds of thousands of dollars, which represented their entire retirement savings. For example, when comparing crowdfunding lending opportunities, you will ultimately need to assess how likely the borrower is to repay your loan. Written by Kapronasia ||

The company is reportedly planning to list in the U.S. in a deal that would raise up to US$3 billion. On May 31, Weidai announced it would exit P2P lending by June 30. Netizens voice concerns over new Tech.Pass work pass despite Trade and Industry Minister Chan Chun Sing’s assurance it will not replace locals’ jobs.

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