The Legal Supervision Of The Risk Of P2P Lending Platform

In recent years, China’s P2 P lending platforms develop rapidly. However, due to low access threshold, defective credit system and absence of relevant laws and regulation and industry supervision, its risks are accumulating. Many platforms were closed down, and many bosses absconded with the money. Intensifying risk control of P2 P lending platforms have become the top priority for sustainable development of the industry. Though people from all walks of life appeal to strengthen supervision over P2 P lending platforms successively, as P2 P lending platforms are the outcome of Internet finance innovation, how to supervise is a difficult issue. Therefore, this thesis took legal supervision for P2 P lending platforms, the common concern of the society as the research object.In Chapter 1, the author introduced the concept and characteristics of the P2 P lending platform, its rapid development in China and causes, alienation phenomenon generated from its domestic development requirements and flawed platforms created in alienated development process.In Chapter 2, the author analyzed main hidden financial risks in the alienated development process, including the risk of illegal fund raising, the risk of illegal operation, the risk of capital embezzlement and the risk of money laundering. The author also introduced concrete manifestations of several risks and the causes of formation.In Chapter 3, the author evaluated and analyzed the normative documents newly released by Chinese government to promote sound development of Internet finance and the supervision document which is now being drafted. He also introduced the current situation of supervision of P2 P lending platforms and existing problems. The problems include low level supervision regulations, unclear supervision duty assignment and formalistic supervising behaviors.In Chapter 4, the author introduced situations of P2 P lending platforms supervision in foreign countries and relevant supervision laws. They are good models for China’s supervision system. The author then proposed to set up “moderate supervision” of P2 P lending platforms and fundamental principles to be followed during supervision. He also asked to refine the supervision legal system from the perspectives of beforehand risk prevention, in-process risk control and afterward legal right protection.Innovative points of the thesis are as follows. 1. P2 P network lending develops rapidly. The number of relevant platforms keeps increasing. New problems are exposed constantly. Therefore, the author can acquire the latest data and select new cases to support his argument; 2. P2 P lending platforms are the outcome of Internet finance innovation. As the existing laws are lagged behind by development of P2 P lending platforms, the newly released supervision document has drawn extensive attention from the society. Therefore, the author can propose new arguments from new perspectives.