In today’s talking points: Rise of Peer-to-Peer lending; Australia has five years to prepare for Chinese debt risks; Fosun goup buy controlling stake in China rail public-private venture; Standard Chartered Bank China announces direct trading for UAE and Saudi currencies.
Rise of Peer-to-Peer (P2P) lending
Banks lending’s time consuming, lengthy and rigid procedures gave rise to peer-to-peer (P2P) or marketing place lending, platforms that offer simplified and quicker procedures, lending decisions and better interest rate deals with more transparency. Research by Transparency Market Research suggests that ‘opportunity in the global peer-to-peer market will increase to $897.85Bn by the 2024”, and China’s P2P lending market is the largest and most dynamic in the world, however many indulged in fraudulent schemes and activities. The Chinese government is in the process of building policy framework surrounding the P2P space and aims to encourage development of such platforms.
Read more at: Nasdaq News
Australia has five years to prepare for Chinese debt risks
According to Treasurer Scott Morrison, Australia has five years to build a more resilient budget to a potential economic shock from the fast-rising debt levels in China. The IMF stressed on Wednesday that China must allow its economy to slow in order to stop a “disorderly deleveraging” in emerging markets and hitting asset prices in advanced economies. It is important that the central and local governments and administrators be wary of debt issues, and challenges could be resolved if a “comprehensive plan to address vulnerabilities in the financial sector” is implemented.
Read more at: Australian Financial Review