China's newly added peer to peer (P2P) loans maintained robust expansion in November but growth of newly established platforms slowed down and more platforms showed problems.
Data from wdzj.com, a leading industry website, shows that newly added P2P loans in November reached 133.124 billion yuan, growing 11.26 percent from October and up 4.2 times from 31.324 billion yuan for the same year earlier period.
The number of newly launched P2P lending platforms rose 3.65 percent from October to 171, making the total number of P2P platforms in operation to 2,613, but the monthly growth hit the lowest level since the year. By the end of November, China's outstanding P2P loans stood at 400.543 billion yuan, 4.47 times of the previous year's 89.641 billion yuan.
Ma Jun, chief analyst at wdzj.com, with the number of P2P platforms rising, the growth has slowed down. Moreover, as the detailed regulation will be promulgated soon and the requirements of industry access will be stricter, the slowdown is expected to continue. Meanwhile, an increasing number of P2P platforms incurred problems.
In November, 79 platforms reported problems. However, analysts believe with support of favorable policies and investors' growth interests, new P2P loans in China will likely continue to expand. It's estimated newly added P2P loans in 2016 may top 1 trillion yuan.
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