On The Legal Regulation Of P2P Network Loan In China

Nowadays, there are lots of innovation in the financial sector of China. P2P lending existsjust as one of the new financial-like states. In fact, its development due to the deepening reform ofChina’s market economy, and inextricably linked with the development of Internet technology andthe rise of private lending. It complements the traditional financial services market, promotes thetraditional financial institutions to accelerate the transformation, and provides the driving force todeepen the reform of the entire financial system.The development of P2P lending in China is still in the initial stages, and there still existsmany deficiencies in its mechanism.Moreover, due to the imperfect legal system of China and thelack of effective legal regulation, the P2P lending is in a disorder and risky state. According to thepractices of P2P lending in China, this article mainly explores the methods of solving the problemsit faces. And it presents some suggestions for perfecting the system of legal regulation, based onour unique industry practices and the relative legislative experience abroad.There are four chapters in this article. As the logical starting point, the first chapter introducesthe concept and characteristics of P2P lending, summarizes its situation at home and abroad, andexplores the real motivation of its development from economic, policy, and legal aspects. Thesecond part summarizes and analyzes the typical platform P2P lending for paving the way ofsolving the problems involved in later. The third chapter mainly explores the potential legal risk,credit risk and operational risk about this industry, and provides constructive preventive measuresaccordingly. Finally, the fourth chapter defines the concept of " regulation of law", and stressesthat the real value of the legal regulation is what makes this industry return to the rule of law.And then the chapter analyzes the problems in the legal system related to this industry and putsforward some suggestions to solve these problems, hoping that P2P lending in China can achieve abalanced interaction between market innovation and legal regulation.