More than 800 Companies Registered at the Qianhai Service Industry Cooperation Zone
Around 800 companies that provide online financial services in Shenzhen are registered majority in the Qianhai Shenzhen Hong Kong Modern Service Industry Cooperation Zone, with half of these companies serving as peer to peer lending platforms grew into an industry with a monthly growth rate of 10 percent.
The amount of these loans facilitated by these institutions accounts half of the province total and around 30 percent of the country’s total. Peer to peer lending is a direct lending to unrelated individuals without any involvement of any financial institution as intermediary. This type of lending is online and uses specialized websites. The Qianhai area serves as headquarters of around 699 internet financial services companies this includes the nine crowd founding companies, 51 data mining companies and 41 online payment companies.
And because there are no regulations, fraud cases connected with these mode of financing have emerge recently and the financial supervision authority is formulating policies that will reign in on these issues. Furthermore peer to peer companies are supposed to be brokers and can’t develop their own capital pool. One possible solution is to allow Qianhai to integrate resources and build infrastructure platforms that will support internet financial services companies based on payments, settlements, credit evaluations and data exchanges.