Chinese Online Lending Platforms See 14.21% Rise in Overdue Loans, 17 Plan Benign Exits


China’s online lending platforms saw a decline in transaction volumes in tandem with a rise in overdue loans in the month of February.

Data from Diyi Wangdai (第一网贷大) indicates that 89 online lending platforms for whom data is available saw transactions of 49.77 billion yuan in February, for a decline of 19.4 billion yuan, or 28.14% compared to the preceding month.

As of the end of February their loan balance stood at 572.887 billion yuan, for a fall of 8.523 billion yuan, or 1.47% compared, to the preceding month, while the number of borrowers was 29.2752 million, for a fall of 0.21%, while lenders stood at 6.3797 million, for a reduction of 0.77%.

The 89 online lending platforms for whom February data is available comprise 72.95% of the 122 platforms that are connected with the registration disclosure services platform of the National Internet Finance Association of China (中国互联网金融协会).

17 of these online lending platforms are already actively preparing benign exits.

The volume of overdue loans in February stood at 13.003 billion yuan, for an increase of 1.618 billion yuan, or 14.21%, compared to the preceding month.

Hu Eryi (胡尔义在), statistical analyst with NIFA, said to Securities Daily that Chinese regulators are stepping up their compliance inspection efforts as well as information disclosure systems.

“The data from February clearly indicates that NIFA members are taking the lead in [policy] implementation,” said Hu.

“NIFA’s National Internet Finance Registration Services Platform (全国互联网金融登记服务平台) is playing a strong role, and we propose that all regions entrust NIFA with undertaking centralised information disclosure for online lending platforms.”