Signs of distress in China’s peer-to-peer (P2P) lending marketplace are intensifying due to tighter regulations of the industry itself and Beijing’s ongoing deleveraging campaign. Many P2P platforms are suffering from a shortage of funds as investors lose confidence and withdraw. The pressure these platforms are facing at present indicates that Beijing’s deleveraging campaign is continuing to impact informal financing activities, even amidst recent policy discussions of potential adjustments in regulatory tightening measures.
