Most Chinese Peer-to-Peer Lenders Will Fail, Lufax’s Gibb Says
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The vast majority of China’s more than 1,500 peer-to-peer lenders are going to fail, with as few as one in 20 surviving, according to Gregory Gibb, who runs the biggest.
“Their business models are turning into pyramid schemes,” Gibb, chairman of the lending platform Lufax, said in an interview Wednesday at Bloomberg’s headquarters in New York. Some promise unrealistic returns to investors and lend without enough data to determine borrowers’ creditworthiness, he said.