Freewheeling P2P sector poses risks for investors

Ratings agency says lack of disclosure hampers assessment of borrowers

More than 90 percent of the companies and projects trying to raise funds in China's fast-growing peer-to-peer lending sector received the lowest rating from a leading domestic credit rating agency, underscoring the huge risks of this virtually unregulated sector.

Dagong Global Credit Rating Co Ltd examined more than 1,000 prospective P2P borrowers, using its own scoring system to evaluate borrowers' creditworthiness. The firm gave 93 percent of the projects a Bi rating, the lowest rung on Dagong's ladder.