Oriental Ventures sounded the alarm for the entire P2P industry

Recently, Shenzhen, a P2P company named Oriental Ventures to the entire P2P industry has sounded the alarm.

The company's main partner because of the use of P2P self-financing, the court of first instance as a "crime of illegal absorption of public deposits" and sentenced to 3 years.

According to a person in charge of a P2P platform in Beijing, "Now more than 2,000 platforms nationwide, 70% are self-financing platforms."

In the context of "no barriers to entry, no industry guidelines, no regulatory rules", the P2P industry has seen rapid developments with the frequent occurrence of risk cases.

For why the CBRC has yet to supervise the program, many people in the industry believe that on the one hand lies in the industry is too fast, it is difficult to effectively define its concept, on the other hand, investors are limited, the temporary difficulty in systemic risk.

According to the net loan home data show that as of the end of the first half of this year, the number of participants in P2P investment 442,600 people, the number of loans through P2P is 189,000 people.

Positioning awkward

Regulatory thinking has gradually surfaced. In April this year, for the first time, China Banking Regulatory Commission put forward the "four red lines" bottom line supervision ideas for P2P. That is, one is to clarify the intermediary nature of the platform, the other is to make sure that the platform itself can not provide guarantee, the third is not to engage in capital pool, and the fourth is to illegally absorb public deposits .

On July 8, Wang Yanxiu, director of innovation department of China Banking Regulatory Commission, once again emphasized that P2P should be clearly positioned as an information intermediary, not be guaranteed in itself, and should not promise the loan principal income and so on.

On July 18, Liu Shaojun, director of the Financial Law Research Center of China University of Political Science and Law and vice president of the Bank of China Law Research Association, said at the P2P platform law and risk control research forum that the basic condition for a financial institution lies in the operation of other people's funds and there is bound to be systematic The financial risks must be included in regulation. P2P industry regulation, how to monitor, all depends on the P2P platform business model and business risk.

"Regulatory is to help organizations to avoid risks.If the P2P platform is just an information platform, it means there is no systematic risk, regulators do not need nor have the right to supervise.If the P2P platform to operate funds, there must be a risk of regulation. Liu Shaojun said, "If P2P platform is self-guarantee, or P2P platform and small loan companies, there is a need for supervision."

Regulators regulate the operation of P2P network loans, thereby reducing the risk. Short financial network CEO Wang Kun Economic Observer reported that the core obstacle existing P2P domestic social credit system is not perfect. In the case of imperfect credit collection, investors diversify their investments to reduce risk.

Currently, the central bank credit system has covered more than 800 million natural persons, but from the caliber of the current central bank credit reference point, P2P access to the central bank credit system still needs time.

Wang Xiaolei, deputy director of the Central Bank Credit Rating Center, said on July 19 that if regulators can determine that P2P is indeed a lender or a lender, "access to credit agencies as required by the Central Bank's credit rules The legal responsibility of the credit reference center. "However, in the regulatory thinking of China Banking Regulatory Commission, P2P is an information intermediary. As can be seen from this, P2P access to the central bank credit information system has a long way to go.

The current rapid development of P2P, business models varied, many insiders said the regulators did not introduce regulatory details, on the one hand, the industry is too fast, it is necessary to encourage innovation, hoping the industry to alleviate the financial difficulties of small and micro enterprises play a role ; On the other hand, there are fewer participants and there is no systematic risk for the time being.

According to the home loan network "2014 China's online loan industry in the first half reported," shows that the number of participants in P2P investment is 442,600 people, the number of loans through P2P is 189,000. It is estimated that by the end of 2014, the number of borrowers will reach 500,000 and the number of investors will reach 780,000.

A third-party payment executives told Economic Observer that at the moment there is only too much impetuous passenger in P2P industry and no enterprise that creates core value. "There is no sign that P2P improves the efficiency of financing for individuals and small and micro enterprises, nor does it really solve the problems of individual financing, small and micro loans, and risk control."

The data show that in the first half of 2014, the average composite return on net-loan industry investors was 20.17%. According to the current industry's monthly rate of decline in monthly interest rates, by the end of 2014, the consolidated net-loan-industry investors will have dropped to 17%.

Although the rate of return of investors is on a downward trend, financing costs of the financing party will be around 40% if the guarantee fee, platform fee and other costs are added. Hu Xiaoxia, general manager of SME credit department Huaxia Bank, told Economic Observer that the practical benefits of small and micro enterprises are limited and the high cost of financing can hardly alleviate the plight of small and micro enterprises.

Seeking trusteeship

"CBRC explicitly requires P2P to be located in the information intermediary, the platform itself can not touch the capital, the funds must be hosted by a third party, and the majority are currently hosted by the third-party payment agencies. There is no third-party payment-hosting platform is completely non-compliant, but there are Third-party paid hosting can not be fully compliant. "Beijing head of a platform reported to Economic Observer.

Short financial network and e-payment signed a service agreement, its CEO Wang Kun introduced to reporters their business processes, investors and investors to apply for their own, in the e-payment platform to establish an account by the P2P platform to project and investment correspond. In the process, whether the real financier is equal to the financier announced on the platform and nobody interrogates it. P2P platform can be an account or project assigned to anyone on the platform, investors do not know. Successful financing, P2P platform, how much capital removed as a fee, investors simply do not know; where to go for funds, investors do not know. "We had a million mark on platform testing and the testing backend set the financier as one of our employees, and as a result, we invested, and then of course we gave the money back and let him bid again. "

According to the reporter, a third-party payment company in Shanghai established the first managed P2P third-party account system in China and has cooperated with several P2P platforms so far. "Our P2P Managed Account System provides a complete financial security solution that takes a three-dimensional, all-encompassing look and feel from the three phases of trading, before and after," said a third-party payment company to Economic Observer.

Investor in charge of investment to the Economic Observer reported that the escrow business paid by a third party does not completely solve the risk of capital, because the financing of real and third-party third-party payment channels can not be identified, so called "hosting" is better called "depository" more appropriate. The "escrow" business paid by the third party does not verify and report the authenticity of the transaction but merely acts in accordance with the contract. "Our system requires that the order be fully matched with the target. In operation, there is no prior-to-capital bidding and there is no time and efficiency mismatch." The third-party payment company sources said that "thanks to The whole process of risk prevention and control mechanisms, and we cooperate with a number of P2P platforms so far no major risk events.

Commercial banks generally provide fund custody accounts and fund custody accounts belonging to special accounts. Regulators require access to funds before the opening of the account has been established, the bank provides a good access to the regulation of a good regulation; trustees require each A sum of the amount required to enter and exit with the contract, and verify the authenticity of the contract and filing, such as trusts, securities and so on. "Both the CBRC and the industry are exploring the custody and supervision of bank accounts, but the cost of bank accounts is certainly higher than the third-party payment," said Wang Bo, CEO of Investment Bank.

According to Economic Observer, there are currently P2P companies and banks to carry out supervision of the cooperation of the account funds.

Kang Yiwen, chief operating officer of EasyTax, told Economic Observer that "We have included the funds in the regulation of Wanliu Branch of CITIC Bank. Now we are disclosing information. As the P2P financial lending platform, as a financial intermediary, while protecting the interests of investors, Also need to take into account the protection of the privacy of borrowers. "However, Kang did not disclose the cost of bank supervision.

Industry sources said that "higher bank custody fees, eBao payment fees in the 2 ‰ ~ 3 ‰, come in and out of the money, the financiers put a sum of money come in to give money, investors have to give money, but the third party Payment can be inter-bank operation, if the account in the bank, inter-bank operation is not convenient.