The two faces of the P2P lending market in China

The online lending market, or peer-to-peer market, in China has been growing incredibly fast over the last decade, with hundreds of platforms entering the sector and many others closing operations due to fraudulent activities or bankruptcy. The local P2P market has reached a new milestone at the end of 2015, with one of the most established platforms going public on New York Stock Exchange, while at the same time another large portal being seized by Chinese police.

The Chinese P2P Market with its estimated 9.4 trillion yuan ($1.5 trillion) total assets is the largest in the world. One of its most popular and biggest portals, Yirendai, founded back in 2012, has recently made history in the sector by becoming the first Chinese P2P lending platform to make an IPO in the US and the second one ever, after Lending Club which went public earlier this year.

Yirendai, a spin-out of Beijing-based financial service firm CreditEase, reported revenues of $138 million and profits of $31 million in the first nine months of 2015 and it is said to have served some 352,000 borrowers and investors and facilitated almost $1.4 billion in loans since its launch in 2012. The company’s shares, which were initially priced at around $10-$11 were trading below the foreseen price on the first day. This could be due to end of the year volatility, but also it could signal cautiousness on the US investors’ side.

Originally published at You can read the full story here: Photo credit to: Roger Walch.

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