P2P Lending



China’s P2P market grows rapidly. The number of operating platforms expanded from approx. 50 in 2011 to 1575 in the end of Year 2014. In the US, on the contrast, has less than 100 players in this industry. Evidence reveals that the transaction volume increased from $1.36 billion in 2011 to $40.03 billion in 2014. It is worth pointing out that in China few institutional investors entered this industry. $40.03 billion trade volume is contributed by 2.3 million individual investors ( invest volume per capita is approx. $17.4 thousand). Considering the fact that China’s middle and wealthy class is growing steadily and many of them lacks investment channels other than real estate and stock market, we confidently predict that the P2P lending market will maintain a high-speed growth in the next three years.
China & US P2P Transaction Volume
There is no reliable source of the total volume of US’ P2P market. So we combine Lending Club, Prosper and Ondeck’s transaction volume together, which is expected to cover the vast majority of the US market.
LEnding CLib & Hongling Capital
Another notable feature of China’s P2P market is its de-centralization. There are no dominant players like Lending Club or Prosper in China. More than 50 firms received equity investment (the number is growing every month) and at least 20 platforms have good chances for IPO for near future. Below is the comparison between Lending Club and Hongling Capital, a solid platform in the southern China.