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Ngành Cho Vay P2P Ngàn Tỷ USD của Trung Quốc Vỡ Trận | Trung Quốc Không Kiểm Duyệt - YouTube
Channel: Trung Quốc Không Kiểm Duyệt
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On this episode of China Uncensored,
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it turns out that lending money
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to strangers on the internet
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can be kind of risky.
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Hi, welcome back to China Uncensored.
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I’m your host, Chris Chappell.
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It’s scarier than Jurassic Park.
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More terrifying than Jaws.
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And way more...serious than The MEG.
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It’s the peer-to-peer loan crisis in China.
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And it’s worse than Jason Statham
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trying to stretch his acting range.
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P2P lending is also called crowdlending.
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It’s one part of China’s shadow banking
industry—
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a kind of parallel dimension of debt financing
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that conjures up images of back alley loan
sharks.
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Shadow banking is all the lending and borrowing
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that’s done outside the highly regulated
banking industry.
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And in China, shadow banking is big business.
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It includes includes everything
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from high-risk exotic investment products,
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to pawnshop and loan shark operations,
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to online peer-to-peer loans.
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Shadow banking has been crucial to China’s
economy
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because it provides much-needed loans to small
businesses
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and individuals that might not qualify for
regular bank loans.
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Local governments have even used shadow banking
loans
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to make up shortfalls.
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Shadow banking in China is a 10 trillion dollar
a year industry.
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This slice—about 9%—is the crowdlending
sector.
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The P2P lending may seem like a small slice,
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but there’s more P2P lending in China
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than everywhere else in the world combined.
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It’s got 50 million registered users,
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and outstanding loans of around $200 billion
dollars.
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P2P lending is a bit like Tinder.
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But instead of going on a date with a stranger,
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you enter into a financial partnership with
a stranger,
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and in both cases,
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if the person has face tattoos,
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swipe left.
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Okay, seriously P2P lending is less like Tinder
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and more like Kickstarter.
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Only instead of funding a company
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and getting an underwater drone,
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or a high-tech watergun, or a....
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giant Lionel Richie head...ok,
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instead of a product,
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you fund a company and earn interest from
your loan
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after a certain period of time.
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By cutting out the bank as a middleman,
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crowdlending platforms promise high returns
to lenders,
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and cheaper loans to borrowers.
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Some platforms promised as much as a 12% return,
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which is way higher than you could get from
anywhere else.
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Win win, it would seem.
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Except that these platforms have spread like
wildfire
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pretty much without any regulatory oversight,
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and a lot of times the loans are risky.
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Like, you might think you’re funding the
underwater drone,
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when it turns out you’ve actually funded
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the giant Lionel Richie head.
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And there’s no way to pull your money out.
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And a lot of times, lenders don’t get paid
back.
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Also, the lack of oversight means that
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even P2P companies themselves
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can cheat investors over a long period of
time.
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For example eZuBao.
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It was once the golden child of P2P lending
in China.
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But it was shut down in 2016 after cheating
investors
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out of $7.6 billion dollars in an elaborate
Ponzi scheme.
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How elaborate?
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Well, according to the New York Times,
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eZuBao duped about a million investors
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by offering fake investment products.
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And to hide their trail,
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the bosses buried 1200 documents
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in 80 bags 20 feet underground
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that took police a whole day to dig up with two excavators.
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That’s crazy!
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Did no one tell them about paper shredders?
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Or a bonfire?
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And it goes way beyond just peer-to-peer lending.
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The entire shadow banking sector in China
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has been gripped by a regulatory shakedown
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in order to reduce leverage, curb crazy levels
of risk,
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and hopefully prevent a financial meltdown.
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Since regulators took P2P lending into their
crosshairs,
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these platforms have started dropping like
flies.
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According to the South China Morning Post,
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the total number of P2P lending platforms
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that have failed is over 4 and a half thousand,
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with more than 200 in July alone.
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Yes, there are more than four thousand lending
companies
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that have failed,
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taking people’s money down with them.
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The head of the Shenzhen Internet Financial
Association
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warns that “The industry might enter a great
recession.”
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Everybody’s on edge, he says, as some companies
shut down
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because of bad loans, fraud, or asset freezes
by inspectors.
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A total of 165 lending platforms
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stopped allowing investor withdrawals in July,
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locking up tens of billions of dollars in
capital.
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On top of that, hundreds of P2P lending platform
owners
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have simply run away with investors’ money!
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So obviously, a lot of people are upset.
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They want the government to bail them out.
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Or to hold the companies accountable.
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But in the government’s view, it’s the
investors’ own fault.
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People knew it was risky, and invested their
money anyway.
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Besides, government bailouts are only for
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rich corporations that are too big to fail.
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So a lot of angry people decided to undermine
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China’s harmonious society by traveling
to Beijing
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to petition the appropriate government office.
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Don’t see any protesters?
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That’s because no protest took place.
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“Last Monday,
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many wanted to demand a P2P bailout from the
government,
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and organized themselves online.
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However, any challenge to stability is sensitive
in China
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and those who managed to the protest
area were detained.
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An investor told Reuters this video shows
they were forced
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onto buses and carted away to a holding center.”
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Some petitioners didn’t even make it all
the way to Beijing.
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According to Reuters, many would-be protesters
were removed
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from Beijing-bound trains ahead of the protests,
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forced to give fingerprints and even blood
samples.
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Turns out it’s not just banks
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that are the bloodsuckers in this story.
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Now to be fair,
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Chinese authorities didn’t only crack down
on
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investors who lost their life savings.
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They also cracked down on people who borrowed
money,
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and had trouble paying back their P2P loans.
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Authorities put them on a social credit rating
blacklist.
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It’s just one of the 10 delightful new measures
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China’s regulators have come up with to
minimize risk.
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And to make sure that no one goes unpunished.
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Others measures include “strictly banning”
local authorities
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from allowing any new P2P lending platforms
to be set up,
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and setting up so-called “communication
windows”
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where people who’ve lost money can vent
their grievances
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outside the public eye,
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where someone no power to help them,
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can pretend to listen.
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Now it’s good that the Chinese government
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is finally trying to regulate this P2P lending
industry.
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But as for the individual investors
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who have already lost their life savings?
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They now understand just how
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the Chinese Communist Party maintains stability:
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There’s a serious financial problem that
threatens
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the livelihoods of millions of people.
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But instead of allowing protests,
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they figure out a way to keep protesters quiet,
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and sweep the whole thing under the rug.
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Or under a giant Lionel Richie head.
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So what do you think China, should bail out
P2P lenders?
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And what do you think about China clamping down on protesters?
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And what’s the weirdest kickstarter you’ve
ever funded?
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Leave your comments below.
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And before we go,
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it’s time for a question from one of our
fans
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who supports China Uncensored on Patreon.
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James Kelton asks:
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“Is there anything happening in China at
the moment
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that isn't a prelude to the Apocalypse?
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It all seems rather gloomy of late...”
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Nope!
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It’s all gloom and doom.
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Sorry, James.
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I’m just kidding.
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There are good things happening in China.
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For example, in northern China,
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there’s a project underway
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to turn desert into arable farmland.
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Although, the part they leave out is
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how seven decades of bad environmental policy
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resulted in massive desertification.
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So yes there are good things.
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But I generally don’t tell you
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about them on China Uncensored,
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since Chinese state-run media is doing
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a perfectly good job of that.
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China Uncensored is here to tell you about
the things
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state-run media keeps censored.
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And those are not the positive things.
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Thanks for your question, James.
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And for everyone else watching,
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China Uncensored relies on viewer support.
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So click the link below to visit us
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on the crowdfunding website Patreon,
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and contribute a dollar or more per episode—
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and I might answer your question next.
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Once again, I’m Chris Chappell.
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Thanks for watching China Uncensored.
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Click the orange button to visit Patreon.com
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and if you can, support China Uncensored.
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You’ll get all sorts of cool perks,
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and of course you’ll be making a huge difference for the show.
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Click here.
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