Browsing by Subject "P2P"

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  • Stern, Caroline; Mäkinen, Mikko; Qian, Zongxin (2017)
    BOFIT Policy Brief 8/2017
    Published in Journal of Chinese Economic and Foreign Trade Studies, Vol. 10 Issue: 3, 215-228
    This paper studies the development of financial technology companies (FinTechs) in China. We describe the recent development of payment services and P2P lending and analyze empirically the determinants of P2P lending in different regions in China in 2014-2017. Our descriptive analysis shows that the surge in the number of the P2P platforms in China follows an inverted U-shaped phenomenon. However, the outstanding balances of P2P lenders is still increasing, while average yields of P2P lenders have sharply plunged. Our empirical findings indicate: (i) P2P lending is more extensive in region with more mobile phone subscriptions; (ii) outstanding balance of P2P lenders in region is negatively associated with the size of traditional banking sector; and (iii) the number of the P2P platforms in negatively related to the fixed assets investments in region, whereas average yield is a positively associated with the fixed assets investments.
  • Stern, Caroline; Mäkinen, Mikko; Qian, Zongxin (2017)
    Journal of Chinese Economic and Foreign Trade Studies 3
    BOFIT Policy Brief 8/2017
    China is a country with the most number of operating peer-to-peer (P2P) lending platforms (approximately 2,000) worldwide. This study aims to provide an overview on FinTechs in China. It was examined why payment services and P2P lending are so popular in China and what are the determinants for the emergence of P2P lending platforms in different provinces in China.
  • Funke, Michael; Li, Xiang; Tsang, Andrew (2019)
    BOFIT Discussion Papers 23/2019
    This paper studies monetary policy transmission in China’s peer-to-peer lending market. Using spectral measures of causality, we explore the impacts of Chinese monetary policy shocks on China’s P2P market interest rates and lending amounts. The estimation results indicate significant spectral Granger causality from monetary policy surprises to P2P lending rates for borrowers, but not the reverse. Unlike the lending channel for traditional banks, monetary policy shocks do not Granger-cause the credit amount in the P2P lending market.
  • He, Qing; Li, Xiaoyang (2020)
    BOFIT Discussion Papers 27/2020
    We investigate the influence of financial and political factors on peer-to-peer (P2P) platform failures in China’s online lending market. Using a competing risk model for platform survival, we show that large platforms, platforms with listed firms as large shareholders, and platforms with better information disclosure were less likely to go bankrupt or run off (platform owners abscond with investor funds). More importantly, failing platforms were much less likely to run off in advance of major political events, but more likely to declare bankruptcy or run off after such events. These effects are more pronounced for politically connected platforms, platforms operating in provinces where local officials have close ties with central government, and in provinces with better local financial conditions. Our study highlights the role of political incentives on government regulatory intervention in platform failures.
  • Hasan, Iftekhar; He, Qing; Lu, Haitian (2020)
    Journal of International Money and Finance November
    This article traces the extant literature on the impact of social capital on economic attitudes and outcomes. Special attention is paid to clarify conceptual ambiguities, measurement techniques, channels of influence, and identification strategies. Insights derived from the literature are then used to analyze the marketplace lending industry in China, where the size of the peer-to-peer (P2P) lending market is larger than that of the rest of the world combined. Ironically, approximately two-thirds of these online P2P lending platforms have failed. Empirical evidence from the monthly operating data of 735 lending platforms and transaction level data from one prominent platform (Renrendai) shows that platforms in provinces with high social capital have low risk of failure, and borrowers in provinces with high social capital can borrow at low interest rate and are less likely to default. We also provide observations to guide future economic research on social capital.