SOAS Research Online

Abstract

In November 2020, China's P2P online lending platform completed a complete liquidation. P2P online lending platforms emerged in China in 2010. From rise to prosperity, to regulation, to the final liquidation of the industry, this short process has meant that investors and the industry have paid a painful price. Therefore, this paper aims to study the risks and influencing factors of online lending industry platforms, consider the crux of the lack of past development, and provide references for future Internet financial innovation and risk management in innovation. This paper studies the behaviour characteristics of P2P platforms and the default risk of platform loans. Starting from the development status of P2P platforms, this paper systematically studies the introduction of P2P platforms, the development of P2P platforms and the causes of P2P risk research. Then, based on the characteristics of China's P2P lending behaviour and the risk assessment of China's P2P lending, a progressive research method is adopted. A clear theoretical mechanism is established to analyse the macro, meso and micro risks of P2P platforms. The first topic is mainly studied from the perspective of lending platforms. Considering the risk of lending platforms and the factors affecting the loan volume of the platform, it is concluded that the loan volume of the platform itself is affected by lending sentiment, herd effect and speculation. In the second topic, we selected three representative companies of Renrendai, PPDai and Yirendai, and obtained the impact of four characteristics, namely borrower characteristics, borrower credit characteristics, borrower working characteristics and borrower asset characteristics, on the loan default rate. The third topic is mainly studied from the perspective of P2P online lending platform problems, and it is concluded that registered capital, whether it is a private background, repayment guarantee, creditor's rights transfer, regional competition, platform survival time, or access bank deposit has a significant impact on P2P online lending problem platforms.