De-risking China's online lending platforms

Authorities crack down on P2P players to sift out frauds and rein in runaway growth

In 2015, the online peer-to-peer or P2P lending sector was booming in China, with over 3,400 platforms vying to offer financing to small businesses and individuals. Now, their number has shrunk drastically to less than 800.

A big question mark hangs over the sector's future like a Damoclean sword. Aggressive expansion and numerous high-profile frauds have prompted an unprecedented regulatory scrutiny and crackdown on the sector.