China P2P Industry ‘Basically’ a Scam, Billionaire Guo Says

  • Chinese regulators this month imposed restrictions on sector
  • Guo was commenting at a Fosun post-earnings briefing

Guo Guangchang.

Photographer: Giulia Marchi/Bloomberg
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Billionaire Guo Guangchang called China’s peer-to-peer lending industry “basically a scam,” arguing that players in the multi-billion dollar sector, troubled by collapses and frauds, lack the ability to price risk.

Guo was responding to a question at a post-earnings briefing by his conglomerate Fosun International Ltd. in Hong Kong about any P2P investments by the firm.