PEER TO PEER LENDING INDUSTRY IN CHINA AND ITS IMPLICATION ON SMEs

Abstract

The background of this paper is China's P2P online lending industry in the period of strict supervision. This paper studies and discusses the impact of P2P online lending on SMEs and the impact of SMEs on China's economic situation, based on the development of China's P2P online lending, the performance of Chinese SMEs, and China's overall economic situation. Due to the short development time of P2P online loans, there is less information available on the Internet, so that the data research period of this paper is not long. Finally, the conclusion obtained through correlation analysis and multiple linear regression analysis is: P2P online loans have a moderate impact on SMEs, and SMEs have the same impact on the Chinese economy. Even so, Chinese financial institutions should pay attention to the difficulty of financing for SMEs. When dealing with P2P online lending industry issues, financial institutions should also give alternative policies to promote SME financing.