P2P Lending in China Plunges in June Amidst Platform Closures

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China has seen a sharp drop in the transaction volume for its P2P online lending sector as regulators crackdown on internet finance.

The “P2P Internet Lending Sector June 2018 Monthly Report” (P2P网贷行业2018年6月月报) released by consultancy Wangdai Zhijia (网贷之家) on 1 July indicates that the transaction volume for China’s online lending sector was 175.723 billion yuan in June, for an on-month decline of 3.80% and a year-on-year plunge of 28.42%.

As of the end of June the number of lawfully operating platforms in China’s P2P online lending sector fell to 1842, for a decline of 30 compared to the end of May.

Figures produced by Securities Daily indicate that June saw 66 platforms succumb to a range of problems, including cash withdrawal difficulties for 49, the absconding of three and the full suspension of operations by 14.

As of the end of June 2018 China was host to a total of 6176 P2P online lending platforms, of which 4334 platforms had either suspended operations or succumbed to difficulties.

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