Analysis Of The Path For Peer-to-Peer Lending Platforms Into Capital Markets

The development of the new thing never runs smoothly. In 2007, the register of PPD represents that the peer-to-peer lending platform is formally introduced in China. As a lack of supervision, peer-to-peer lending platforms show the trend of disorder, mess and even dissimilation at an early stage, but the development of P2P lending industry appears strong marketing energy and creativity.At the end of 2014, the successful listing of Lending Club lighted up domestic peer-to-peer lending platforms to access the capital market enthusiasm. Thereafter, the listing company frequently used merging and acquisition on peer-to-peer lending platforms to realize equity and controlling. The peer-to-peer which had stronger power was looking for listing overseas or used the way of back-door listing to achieve the company listing in the National Equities Exchange and Quotations (NEEQ). In 2015, there were four peer-to-peer lending platforms going to NEEQ through the way of back-door listing. On December 18,2015, YRD.N was formally landing in New York Stock Exchange(NYSE), becoming the first domestic peer-to-peer lending platform which realized the overseas listing. Before regulatory policy not fall to the ground, the peer-to-peer lending industry has always been swing on the edge of regulatory policies to participate in the economic behavior of the capital market with certain policy risk. But with the development of regulatory policies, the development of peer-to-peer lending platform would gradually show a tendency of positive healthy, and stable in the market. Clarity of capital regulation in peer-to-peer lending platforms, also would make the financing policies eligible for peer-to-peer lending platform to enter the capital market.We choose the path for peer-to-peer lending platform into capital market as the point of this paper. We choose successful IPO of Yirendai in New York Stock Exchange (NYSE) and the back-door listing in NEEQ of Jindanlicai as our cases. We discussed the two different paths for peer-to-peer lending platforms into capital market. At last, we made a summary of several paths of entering into capital market.The innovation of this paper is that, we abandoned discusses of the patterns? risk management and the regulatory policy of the peer-to-peer lending platforms, instead we discussed the paths for peer-to-peer lending platforms into capital market. We choose the lasted cases happened during the latter half of 2015 as materials for analyzing. And, we discussed the motivations?the cos?the equity financing and other aspects of the two paths.We hold the opinion that with the development of regulatory policies, the development of peer-to-peer lending platform would gradually show a tendency of positive healthy, also there will comes peer-to-peer lending platform industry reshuffle. We think that platforms which has got connected with capital market may get corner overtaking during the development of peer-to-peer lending platform, also those platforms may get great-leap-forward development.The deficiency of this paper is that we only selected two paths of entering into capital market, and we gave up the paths in the main board market and Hong Kong security market, this may not lead fully effective conclusions. Due to the complexity of the path in capital market, we can only discuss those problems through the materials we searched.