Cooling down

Author: | Published: 17 Oct 2018

Small investors in China are up in arms: peer-to-peer (P2P) lenders are closing down everywhere as a result of a regulatory crackdown on fraudulent operators and so-called shadow banking. Thousands of investors have lost their life savings after investing in platforms that have collapsed. Specific centres have even been set up to deal with the high volume of complaints.

The lure of high interest rates has led many small investors to pile their savings into these platforms which then lent out the money to small companies that find it challenging to get credit...