Research On Risk Warning Of P2P Network Lending Platform In China

P2P network lending is the internetization of traditional finance.On one hand,due to its low barriers to entry and it is convenient to get loans,it has become one of the major financing ways for most small and micro enterprises and individuals who have difficulties in financing.On the other hand,it also provides good investment opportunities for the majority of small investors.P2 P network lending has gained fast development in our country as for the increasingly stronger market demands.But because of the imperfect credit system and incomplete industry supervision system in China,there are a large number of problems in the development of P2 P network lending.Since 2013,the number of problem platform such as "running","fraud","withdrawal difficult" and "closed" has increased dramatically,which has brought great loss to investors and done damage to sound development of this industry.Therefore,in order to reduce the loss of investors as much as possible,the topics surrounding “How to identify the risk factors of the P2 P network platform” and “How to predict the risk of platform early and timely” have become an important research point that scholars pay close attention to.Firstly,the paper systematically investigates the development status and research situation of P2 P network lending in China,and makes a detailed and in-depth analysis.Then discusses the risk of bankruptcy running,the risk of illegal fund raising,the risk of "dismantling",the risk in the process of fund custody and the money laundering risk caused by the unknown information of source and destination of P2 P network lending industry in China.Secondly,based on the current risks of the P2 P network lending,and combining the similar indicators in the existing related research,We integrate14 variables from five dimensions,including platform strength,profitability,risk control,liquidity and transparency to analyze the risk factors of P2 P network lending platform by binary logistic model,and identify 11 variables that have a significant impact on the running status of P2 P network lending platform.In this paper,the risk warning model of P2 P network lendingplatform based on BP neural network is constructed by using these 11 significant variables.The model and data are used to predict the risk level of P2 P lending platform,and the prediction accuracy of the model is 90%.Finally,the paper summarizes the research contents of this study and puts forward some suggestions to prevent the risk of P2 P network lending platform from the perspective of investor.By establishing the risk warning model of the P2 P network lending platform based on BP neural network,this paper hopes to provide advice for investors to make investment choices.At the same time,it also provides reference for the sound development of the industry.The study of the paper has certain realism meanings.