A Feature Recognition Study About P2P Problematic Platforms In China

In recent years,thanks to the fact that Internet technology can effectively reduce the cost of financial transactions and ease the information asymmetry,the financial model of P2 P online lending emerged as the times require,which alleviated the financing difficulties for a large number of small and micro enterprises and individual financiers in China.At present,the scale of P2 P trades has increased dramatically year by year.While continuing to create new historical highs,it also faces more serious problems such as P2 P platform running,bankruptcy,poor operation,and economic investigation intervention,which has caused serious harm to the interests of investors and the reputation of the industry,and may even jeopardize domestic economic and financial stability.Under this background,the purpose of this paper is to analyze and extract the features of risky P2 P platform,so as to provide investment advice for investors to choose P2 P platform,and accordingly,to make recommendations on the formulation of industry supervision policy and platform operation.After reading and studying a large number of existing documents and understanding the development status of the P2 P network lending industry through news reports,network information and other channels,this paper puts forward the foundation of P2 P platform operation,the degree of acceptance of the platform,and the level of platform risk exposed by the platform when docking funds and assets,which can all become important features for identifying problem platforms.Based on relevant theoretical analysis and existing literature,this paper manually collects and collates the data of China's problematic platform and normal platform in 2016 and 2017,and uses Logistic model to carry out regression analysis on the platform data.The empirical results show that in the aspect of platform operation,the P2 P platform management team has a financial expertise and a strong background in the platform all reflect the strong foundation of the platform's operation,and can also play a significant role in the identification of the problem platform.Taking into account the fact that China's registered capital system implements the subscription system and other reasons,the platform with bad intentions may instead use the larger scale of registered capital to mislead investors.Whether the platform is recognized by banks and non-banking financial institutions is of great significance in identifying problem platforms.The transaction scale of the platform and the degree of risk of the platform fund end and asset end reflected by the expected product yield of the platform product also have a significant impact on the identification problem platform.However,the per capita loan amount due to the direction of the platform business does not significantly reflect the risk status of the platform assets.On this basis,taking into account the different levels of economic development in China's regions,this paper divides the sample platform by region into eastern regional platforms and central and western regional platforms,and performs regression analysis separately.The results show that the overall strength of P2 P platforms in the central and western regions is weaker and the operating environment is relatively poor.The identification of problem platforms depends more on the judgment of the professionalism of the platform management team and whether the platform is recognized by banks.According to the analysis conclusions of this paper,the paper further put forward relevant suggestions in the industry supervision and platform operation.As for the supervision of the industry,strict industry access thresholds should be established from both paid-up capital and qualifications of platform executives.At the same time,strict cooperation standards should be established on the bank depository of P2 P platforms and third party financial institutions.And the central and western regions should consider the importance of adapting to local conditions when formulating regional supervision policies.In terms of platform operations,this paper proposes that platform managers should continuously improve their professional qualities and abide by professional ethics.At the same time,the platform should establish a strict review standard for borrower qualifications and strengthen cooperation with third-party financial institutions.