Yingcan Group, a Shanghai based company in charge of tracking P2P lenders has announced drastic changes in laws and regulations this 2016. In China news, the CEO Xu Hongwei declared that “Up to 90 percent of the platforms in the industry will face sweeping changes”
According to the new regulations, P2P platforms will act as intermediaries and not direct providers of credit. P2P in China has known a rampant growth in a little pace of time. Although it has become the largest in the world, several platforms were shut down by authorities.
Liu Shengjun of the China Europe International Business School, goes further to predict more failures in 2016: “It’s both good way and bad. Such big frauds will damp investor enthusiasm for P2P platforms, but at least the publicity will prompt people to take a closer look at where they invest.”
If China’s P2P industry is being shaken, people are still getting acquainted with P2P mostly in Sub-Saharan Africa. However, the presence of Ovamba, global platform operating in CEMAC, has helped several businesses pertaining to various sectors of activity to grow economically.