Third-party platform set up to monitor P2P lending

The first third-party platform in the country to provide analysis of peer-to-peer lending was launched on Sunday.

The website, wangdaitiandi.com, will monitor P2P lending platforms and analyze data to supply reliable information to ensure the safety of investment, said Liu Hui, director of Tongling Deyi Internet Technology Co Ltd, which established the website.

P2P lending volumes have tripled annually since the mode of financing emerged in China in 2006, according to China Business News’ new finance research center, and there are about 200 lending platforms, with around 50,000 investors.

But the sector is so chaotic that at least one P2P lending company went bankrupt every day in October, according to local media.

Ji Ligang, an associate professor at the Antai College of Economics and Management of Shanghai Jiao Tong University, said such a platform would help regulate the novel type of financing and prevent fraud, as there are no specific rules governing the sector.