P2P Lenders Heading into Dangerous Waters, Critics Say

(Beijing) – A loan crisis reportedly involving the country's top peer-to-peer (P2P) lending company has fueled worries that the poorly regulated industry is has drifted away from its roots to engage in other activities.

The original idea for P2P websites was that they were a platform to match people with spare cash with those who need to borrow money. A typical transaction could see someone with a spare 5,000 yuan lend to a newly married couple for a honeymoon trip. Many websites also allow small companies to borrow through them.