# Chen: P2P's tiny but a nightmare? By [BillNoel](https://paragraph.com/@billnoel) · 2023-06-13 --- Column of the editorial leader of the telecommunications/new waves (Bkopleader) The P2P platform, which was initially set aside by Hangzhou for a balance of less than one billion, followed by the Beijing platform for a return of less than 50 million, is expected to be followed by similar initiatives in other regions before the end of the compliance inspection, and it is embarrassed by a “minimum and beauty” platform. As stated in the previous article on file, two points of concern in the P2P filing led by the Financial Services Office by the end of June this year are: One is regional hedging, with different local filings; The second is the difference in the difficulty of standardizing platforms, small platforms, which are small-scale ships. As a result of these two points, a large number of areas have experienced a wave of casings, where platforms in tens of millions, hundreds of millions of regulated areas have been tracked, given the importance of regulatory authorities, national harmonization with standards of compliance, and the small platforms of the current round have been phased out. In regulatory terms, it is important to eliminate the record mentality of P2P casings, etc., and to curb market casing incentives through the clearing of small platforms. While local regulation has a significant volatility, with one billion knives, it may be followed up by a cascade, perhaps three billions, five billion or even more platforms will be out of the market, but, frankly, in the microcredit circle, a billion balance is no small. We know that under-line micro-credit companies have developed in the country for thirteen years, and as of the end of 2017, there were 8551 microfinance companies in the country, with a loan balance of $97,9949 million, and the average credit balance of microfinance companies has barely exceeded one billion. The average of 100 million small loans on the line is crowded out, and it is clear that 100 million small loans on the line cannot simply be said to be too few. According to the new three-board data, by the end of 2017, the average yield balance of 42 micro-credit companies with new three-board trading plates was over 300 million, with an average of 300 million lines with small credit balances of 300 million and 5 billion seconds with new three-boards. After all, however, there are more than eight thousand traditional small loans, while P2P currently has about 1,500 reserves, followed by a record location, where 200 can be left, 100 can be said to remain, and more so 50 will remain. The balance of 1,500 cards, 200 by size of the balance, is probably located at what level the balance is, 100 by the card line, 50 by the card line, and the balance is probably at what level. This line of thinking, regulation or regulation, or even less, is also a means of an orderly withdrawal of stock platforms. The regulatory emphasis has repeatedly been placed on “leading out without risk” and which platforms can achieve “risk-free exit”? Historically small platforms with relatively small balances are undoubtedly the main forces of “risk-free exit”. ranking of the remaining balance of the platform at the top 20,354.494 million yuan renminbi of 50,11171.8 million yuan renminbi of 100,315.94 million yuan renminbi of 20,71.7 million yuan renminbi Data sources: incomplete statistics on Internet lending houses (specified 313 and industry stock at about 1,500) With regard to the first platform, and in parallel with the elimination of the small platform, regulation also requires the first platform to implement a “two-demand” (non-growth of operations, where stock irregularities must be depressed and no longer add to non-compliance), but because of the lack of enforcement authority in the local financial offices, “two-way precipitation” requires different results, some head platforms are strictly enforced and some head platforms are not in place. One of the 108 compliance inspection lists issued by the Board is the implementation of the “two-way-down” requirement, which clearly states that if the total size of the inspection point is greater than the increase in June 2017, size control is not in place. It can be seen that some of the additional head platforms will have to be proactive in reducing their size to a lower growth range than at the end of June last year, through compliance checks. For regulatory purposes, some head platforms are still too large. Prior to filing, it can be expected that the “two-way down” of the first platform will inevitably result in a more nationally harmonized compression of progress at the level of GAPS to ensure that the total size of the industry and the individual size of the head platform can control the inter-districts where policy formulation can be more flexible. Indeed, both regulatory and industry, there has been a voice to replace P2P network lending with network microfinance companies. From the end of the asset, the network loan is in line with P2P. It is only P2P, in part, to obtain assets on a pouch basis, in part from the off-site shop, and the network credit is to operate outside the bunker province only on a line-by-line basis. In addition, among the local network credit regulation schemes in Shanghai, Yunnan, etc., it is also clear that the net lending balance for individual loans is controlled at 200,000, the business-oriented lending balance at 1 million, similar to P2P. At the financial end, the network credit is based on the regulatory approach of traditional subprime loans, which can only be financed by external funds with self-financing and not more than 50 per cent of their own financial resources, with a potential breakthrough in asset securitization from the perspective of encouraging financial innovation, but with strict control over leverage. The financial end is only institutional, thus circumventing a range of issues raised by the P2P financial ends for personal dispersal, and eliminating the risk of financial risk as a social risk. If P2P is replaced by a network subprime loan, all P2P claims are taken over by the network’s small lender, a question of how the head platform complements the full real capital deposit. For the first platform, however, the size of the compressed stock is no longer a mandatory “forced option” under strict regulation, but rather a proactive option for reducing the need for additional real capital payments in the event of a small loan from a transition network. (The authors of this paper: Founder of the Hundreds of Financial Forum, Research Fellow, New Centre for Financial and Entrepreneurship Investment, Beijing University) --- *Originally published on [BillNoel](https://paragraph.com/@billnoel/chen-p2p-s-tiny-but-a-nightmare)*