ANALYSIS OF FACTORS INFLUENCING P2P LENDING INDUSTRY PERFORMANCE IN CHINA

Abstract

The emerging p2p financing method can not only meet the capital needs of individuals and SMEs, but also can effectively revitalize idle funds in the society, providing a good solution for the "difficult and expensive" SMEs in the word. Compared with other developed countries, China's P2P loan development is not yet fully mature. In particular, since 2017, the number of borrowers and lenders who conduct transactions in P2P has decreased significantly, the occurrence of default rate in the p2p industry, and the long loans periods of p2p products have caused more and more p2p companies to go bankrupt. As a combination of Internet and finance, the financial performance of p2p is mainly reflected in two aspects (ROA and ROE). This article mainly analyses the influence of internal factors on P2P financial performance. It mainly includes default rate, number of borrowers, number of lenders, industry average interest rate, Shibor and average loan term.

This article uses regression analysis and SPSS software to explore the factors that affect the p2p platform. Finally, the study found that ROE is positively correlated with the number of borrowers, the number of lenders, and the p2p industry average interest rate. However, it is negatively correlated with Shibor and default rate but not significant. Another profit indicator is ROE. We conclude that ROE is positively correlated with the number of borrowers, the number of lenders, and the p2p industry average interest rate. However, it is negatively correlated with Shibor and default rate but not significant. And made corresponding recommendations for the p2p platform so as to provide a guarantee for the stable and healthy development of the p2p platform in China.