The online lending market, or peer-to-peer market, in China has been growing incredibly fast over the last decade, with hundreds of platforms entering the sector and many others closing operations due to fraudulent activities or bankruptcy. The local P2P market has reached a new milestone at the end of 2015, with one of the most established platforms going public on New York Stock Exchange, while at the same time another large portal being seized by Chinese police.
After the announcement that the tax free individual savings account (ISAs) will be extended to include peer- to-peer loans, the UK’s government launched a public consultation on the possibility to set up a separate ISA for people who want to lend out money through P2P portals.
After the US and Europe, crowdinvesting is slowly developing in Asia as well. Most of the activity is concentrated around equity crowdfunding, with Malaysia’s new crowdfunding regulations and Japan’s crowdfunding bill, allowing companies to raise equity capital through crowdfunding portals. However, little is known about peer-to-peer lending in the area, which in Western countries is instead showing great potential.