Research On The Protection Of Investors’ Rights And Interests In P2P Lending

After nearly a decade’s rapid development, P2 P lending in China is now with a scale that is able to meet the demands of individual borrowing and alleviate SMEs’ financing difficulties. However, P2 P lending is criticized widely due to frequent problem occurrence, which is caused by little supervision. It is now in a “three NOs” state, namely, no threshold for market access, no normative operational standard, and no financial supervision. Therefore, all kinds of fundraising defraud and “flee away” take place frequently, resulting huge losses of investors. The issue of how to effectively protect investors’ legal rights and interests is not only closely related to the long-term healthy development of P2 P lending, but also the stability and innovation of China’s financial market.This paper firstly introduces the concept of P2 P lending, its classification, rights and interests of P2 P lending investors as well as the necessity to protect them. Section two explains explicitly the current situation and problems of protecting investors’ rights and interests in P2 P lending, aiming to illustrate the predicament confronted by those investors. Section three mainly introduces Americans’ and British people’s experience in safeguarding P2 P investor’s rights and interests by showing great details. It is hoped that China’s supervision in this regard can draw on such experiences.In section four, by analyzing the above mentioned problems and taking into consideration of foreign experience as well as the current situation in China, this paper proposes suggestions from different perspectives in hope of steering the development of P2 P in China into the right track so that investors’ legal rights and interests can indeed be well protected.The last section is a conclusion. It points out that initiatives should be taken immediately to standardize P2 P lending platform and work out a bill to protect investors instead of just positively observe and discuss. Besides, the limitation of this paper and future research prospect are also mentioned here.