Linkroy International Group Financing Of P2P Network Analysis

P2P lending network market is a new financial services model which is relying on Internet technology and online communities where people communicate and cooperate with each other to complete lending.The new financing channel rises in Western countries.Since 2005,P2 P lending network has been highly concerned and rapidly developed.After several years of development,Prosper US company and Zopa UK company with convenient and efficient mode of operation,friendly interface,low rates,differentiating financing rate have become leaders in the field of P2 P lending market.P2 P network lending market appeared in 2007 in China,after that a lots of P2 P lending companies came out,such as lufax ?PPDAI?HONGLING CAPITAL.This new inclusive financial model has provides a friendly financing platform for individuals and SMEs so that such funding needs are able to have access to financial services.P2 P lending market emerged to fill the gaps in the lack of credit within the traditional financial system.Although the domestic P2 P network lending market has grown rapidly,but there are many problems.First,P2 P lending supervision is weak.Although there is an inclusive financial sector supervision of the Department of the CBRC,we haven't got the relevant laws,regulations and regulatory approaches yet.The entry and exit mechanisms,fund management approach and the interest rate management practices of P2 P network lending have not been established.Second,the anonymous transactions of P2 P network lending platform causes information asymmetry to parties in the transaction.With only limited project information published,integrity and authenticity of the information on the project and the borrower is difficult to be guaranteed.Third,corporate financing through the P2 P network lending platform is inefficient.Enterprises lack of professional talent of P2 P network lending.Information provided through the P2 P network lending platform is limited to investors.Besides,there are asymmetric information between borrowers and lenders.The purpose of this paper is to analyze the causes of these problems and how to solve the problem effectively through P2 P networks linking international financing case.Based on collecting and organizing of literature review,understanding the characteristics of the P2 P lending,this paper analyses the availability of funding from the P2 P lending market and makes study on the practical application of enterprises in P2 P lending market using the combination of normative analysis and case study method.Through the case analysis of Linkroy International Group lend 200 million yuan from HONGLONG CAPITAL,this paper finds the problems existing in the financing process and on this basis puts forward some feasible proposals on market supervision,platform construction and enterprise financing through the network platform.