Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
Shanghai China
February 25 2020

China considers setting up debt managers to deal with bad P2P loans

Michael Lloyd Global News, News, Top 3 China, regional bad debt managers, Shanghai, Shenzhen, the China Banking and insurance Regulatory Commission, Zheijang

China’s banking regulator is looking to establish regional bad debt managers to help address the fall-out from the country’s peer-to-peer lending industry scandal.

Companies in Shanghai, Zheijang and Shenzhen have sent applications to set up local asset managers to deal with bad loans, after thousands of P2P platforms collapsed, according to unnamed sources cited by Bloomberg. The China Banking and Insurance Regulatory Commission has not yet approved these applications, the report said.

The sources said that, once approved, the regional asset managers will focus on P2P bad loans before gradually extending their remit to other distressed assets.

Read more: P2P in 2019: The highs and the lows

At their peak, China’s P2P industry had almost 50 million investors and $150bn (£115.bn) in debt outstanding.

However, fraud and defaults led to President Xi Jinping’s crackdown on financial risk in the sector which caused the industry to shrink in size.

Around this time last year, the Chinese authorities arrested 62 suspects abroad and seized $1.5bn (£1.2bn) in assets from P2P platforms accused of illegal fundraising.

Despite trying to clean up the sector for the past two years, more than 2,000 platforms have failed.

Read more: P2P regulation: A brave new world

Pollen Street Secured Lending clashes with manager amid takeover talks Nexa Finance founder departs

Related Posts

money UK

Industry News, News, Top 3

BBB sets out further details on recovery loan scheme

Forensic Expert Pressing TASK FORCE

Industry News, News, Top 3

Treasury launches £100m Taxpayer Protection Taskforce

London- HM Treasury building on Horse Guard Road, Whitehall. The UK Government's economic and finance ministry

Industry News, News, Top 3

Alternative lenders welcome Sunak’s recovery loan scheme

Popular posts:

  • The House Crowd goes into administration
  • Chancellor unveils recovery loan scheme
  • Sunak to announce stringent CBILS successor scheme
  • FCA warns The House Crowd investors against using…
  • Octopus Choice has permanently closed
  • Budget outlines plans for £15bn of green bonds in 2021
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by