P2P startups feel the heat, as big boys enter fray

China's budding online finance sector is making serious inroads into the territory of more established financial services institutions, raising eyebrows almost daily with new ventures, new business models, record-breaking valuations, and of course, new bankruptcies.

Think about this: In 2012 when the industry was in its infancy and few had even heard of the expression "peer-to-peer lending", there were 110 such firms in China. By the end of July 2014, there were 1,200. And by the end of June, the number had mushroomed to 2,028.

P2P lending is no longer a quirky acronym - it's a booming market. But equally, I would not be surprised if the number actually returned to the levels of 2012, five years later.