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Full Version: Shanghai savers sound the alarm as more P2P lenders fail to return funds
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Shanghai savers sound the alarm as more P2P lenders fail to return funds

Maggie Zhang, Aidan Yao, Daniel Ren
PUBLISHED : Wednesday, 18 July, 2018, 8:00pm
UPDATED : Wednesday, 18 July, 2018, 10:34pm

China’s ailing peer-to-peer (P2P) lending businesses hit yet another blip after two big platforms in Shanghai failed to repay savers, and as key executives disappeared without explanation.

Dozens of savers who’ve demanded repayment to no avail, reported to the local police in Shanghai’s Pudong district on Wednesday to file complaints about and The value of the claims are reputed to be worth billions of yuan.

On Tuesday, Yonglibao’s senior management team posted a letter online informing savers that the owner and chairman Yu Gang and chief executive officer Zhang Yufeng had disappeared since Monday afternoon,

Xue Liang, founder and CEO of Jucaicat has also disappeared, Chen Shuhao, chief operating officer of the P2P firm, told the Post.

Technically, P2P is an information provider that matches borrowers and depositors via the internet while charging service fees.

Thousands of mainland P2P firms collected deposits from savers, offering them annualised returns of at least 8 per cent, while lending the funds to cash-hungry businesses such as property developers at lofty interest rates.

The practise prompted China’s law-enforcement agencies to launch a clean-up campaign to weed out irregularities in the P2P industry since 2016.

Aside from swindling investors out of their savings, some of the platforms collapsed as third-party borrowers, falling victim to an economic slowdown, were unable to repay loans.

Investors gathered at a police station at Kangqiao, Pudong on Wednesday morning, submitting documents including their contracts with P2P lending platforms Yonglibao and Jucaicat.

Several investors claimed they deposited more than 1 million yuan (US$148,83) on the platforms.

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