Research On The Regulation Of P2P Network Borrowing Industry In China

As a representative innovational model in the internet finance era, the P2 P lending platform, which had been explored constantly since 2007, has not yet been in a clear financial regulatory system. Due to the increasingly fierce competition in this industry, P2 P online lending platform is hard to avoid being in the edge of breaking the law during daily management. It was frequently reported that the problems of insufficient liquidity or funding strand rupture made P2 P online lending platform bankrupt or vanished. Regulators take it seriously and have to enact policies to fix these problems and try to promote the long-term and steady development of the industry.In this context, this article attempts to start with the current condition of P2 P online lending industry. The various risks and issues during the process of regulation will be disclosed. Furthermore, this essay will try to organize China’s regulatory policies and systems in the industry and establish a supervision system which is suitable to be implemented in China by researching and utilizing the abundant and mature supervision experience of foreign countries. Consequently, policy recommendations for the healthy development of P2 P online lending industry will be supplied, which will eventually provide more convenient conditions for the medium small and micro-sized enterprises to receive financing. On the one hand, the P2 P online lending market is a crucial complement to the traditional financial market. On the other hand, it also promotes the achievement of Inclusive Financial system.