SHANGHAI - Investors in Chinese online peer-to-peer lending platform PPMiao protested at the offices of one of the company's shareholders in Shanghai's financial district on Monday, in the latest manifestation of problems facing the industry.
At least 243 P2P companies have collapsed in China since June, precipitating the withdrawal of funds from many firms in the industry and sparking protests by investors across the country.
About 300 investors in PPMiao crammed into the lobby of Shanghai's International Finance Centre shopping mall, which also houses the office of HuaAn Future Asset that was registered as a shareholder in PPMiao's former operator, Hangzhou Fuqian Network Technology.
PPMiao, which on its website says it has 4.9 billion yuan in funds and about 360,000 users, said in an Aug. 6 statement that it was unable to continue operating because investors were withdrawing funds and some firms it had lent money to had suspended payments.
One of the protesters, Cai Dandan, a 28-year-old hotel worker, told Reuters she had traveled to Shanghai from nearby Hangzhou in the hope of contacting HuaAn over her investment over about 450,000 yuan that she put in PPMiao.
HuaAn, whose shareholders include government-owned companies like Shanghai Electric Group and Shanghai Trust, said in a statement on Monday that it had registered as a stakeholder in Hangzhou Fuqian on behalf of a client and had never profited from the platform.
P2P platforms gather funds from retail investors and lend to small corporate and individual borrowers, promising high returns.
https://www.reuters.com/article/us-china-lenders-p2p/chinese-investors-protest-in-shanghais-financial-district-over-p2p-woes-idUSKCN1L50SL
At least 243 P2P companies have collapsed in China since June, precipitating the withdrawal of funds from many firms in the industry and sparking protests by investors across the country.
About 300 investors in PPMiao crammed into the lobby of Shanghai's International Finance Centre shopping mall, which also houses the office of HuaAn Future Asset that was registered as a shareholder in PPMiao's former operator, Hangzhou Fuqian Network Technology.
PPMiao, which on its website says it has 4.9 billion yuan in funds and about 360,000 users, said in an Aug. 6 statement that it was unable to continue operating because investors were withdrawing funds and some firms it had lent money to had suspended payments.
One of the protesters, Cai Dandan, a 28-year-old hotel worker, told Reuters she had traveled to Shanghai from nearby Hangzhou in the hope of contacting HuaAn over her investment over about 450,000 yuan that she put in PPMiao.
HuaAn, whose shareholders include government-owned companies like Shanghai Electric Group and Shanghai Trust, said in a statement on Monday that it had registered as a stakeholder in Hangzhou Fuqian on behalf of a client and had never profited from the platform.
P2P platforms gather funds from retail investors and lend to small corporate and individual borrowers, promising high returns.
https://www.reuters.com/article/us-china-lenders-p2p/chinese-investors-protest-in-shanghais-financial-district-over-p2p-woes-idUSKCN1L50SL
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