China's P2P industry undergoing a shakeout

EDITOR'S NOTE: According to P2Peye.com, one of China's major virtual communities which tracks the operations of peer-to-peer (P2P) lending platforms, more than 250 such platforms went bust in July alone. The massive collapse has spread panic among investors, who have rushed to withdraw their investment from all P2P platforms, putting even greater pressure on the sector. What caused the massive collapse of P2P lending platforms and what should be done to ease the situation? Three experts share their views with China Daily's Liu Jianna. Excerpts follow:

Mass bankruptcy's impact is expected to be limited