The Risk Identification Of Chinese P2P Platform Investor Under Not-Fully-Marketized Interest Rate

P2P lending network is an innovative financing model of direct loans in a small network environment. In recent years, P2P in China is developing rapidly. It broadens the financing channels, eases the information asymmetry and improves the efficiency of resource allocation. But in the relatively relaxed regulatory, non-fully market-oriented interest rates and immature environmental conditions, there have been many on foot, cash difficulties and fraud harm the interests of investors and even affect the financial stability. Therefore, how to help investors identify the risk of bad debts, policy risk and reduce investment risk has become an urgent research topic.On the basis of the development of P2P network lending market, the paper applys information asymmetry and behavioral finance theory,by analyzing current development of P2P network lending market and information asymmetry between the two sides, we discusse how investors identify the risk behind the rate under asymmetric information. In this paper, we construct a theoretical model to analyze information the borrowers disclose how to affect investors.Using the data of Ppdai, we build model and make empirical test. The empirical results prove that in non-fully market-oriented interest rate, the same interest rate may correspond to different risk of default. That is to say, in non-fully market-oriented interest rate, interest rate does not fully reflect the default risk of P2P net loan platform. However, investors can use other publicly available information provided by the borrower to identify different default risk exists behind the same interest rate. Therefore we can find that the investors are intelligent. The result means that the investors have the ability to distinguish different risk.