Yixin P2P crisis

One of the largest P2P platforms in the country, Yixin Company, had a bad debt of 800 million yuan in the northeastern region. This news caused an uproar in the industry, although Reuters responded that the news was false, but once again triggered the industry's doubts about the mode of the letter. It is widely believed in the industry that once the Yixin Model is made larger, it is easy to have problems.

Being trapped in a bad debt of 800 million yuan

On April 9th, the Hong Kong Media News Agency reported that Yixin had a bad debt of RMB 800 million. The project is mainly a real estate project in the northeast region. The bad debt company was originally a “bag company” and the information was fraudulent when applying for a loan. Yixin responded the same day and said that the report was inaccurate and the total scale of the company’s projects in the northeast region was far from RMB 800 million.

On April 10th, there were reports that Yixin had bad debts or more than 800 million yuan, but it should have reached “1 billion yuan”. The project involved real estate, energy, and commodities. On April 10, it was also reported that there was potential for bad debts or redemption risks in a real estate project in Hangzhou issued by Credit Suisse Asset Management Limited.

Earlier, Yixin Company stated in its response to the bad debts of 800 million yuan that the company’s current borrowing scale has reached a scale of 10 billion. It can connect individuals, trusts, banks and other institutions. The company has derived from the original P2P model. T2P (trust-to-individual), B2P (bank-to-individual), and other methods, but it is precisely these rich offline business of the letter to the industry caused many doubts on the mode of the letter.

Focus 1: Line-of-business opacity regulation has not yet been crossed

“We are really different types. They are mainly offline and we are online.” An insider of a senior P2P company in Shenzhen told the reporter that in fact, this letter is similar to real estate from the perspective of the crisis-affected business. Funds of the project products, and the original P2P business has no great relationship.

"The nature of this project is similar to that of a trust. The project of Yixin should belong to a limited partnership real estate fund. This is not a P2P business segment at all. It is something that another business segment, "Yisixin Wealth," is doing, but this kind of thing is generally It is the third-party wealth management company that is doing it, not the P2P.” The person said that from the perspective of various businesses developed by Essence now offline, it is no longer possible to simply define it as a P2P company.

According to statistics, judging from the real estate fund projects issued by Yixin in recent years, the scale is roughly around 30 billion yuan. Although Yixin responded by saying that “the current real estate projects are all in normal operation”, after its clarification, it was once again Refers to the risk of bad debts, and the news is detailed and specific. The target is directed at commercial real estate in Hangzhou, amounting to 300 million yuan.

It is noteworthy that although the current regulatory level has not yet clearly defined the P2P platform development line business, its development has been closely watched by the regulators. Earlier, Liu Shiyu, the deputy governor of the central bank, publicly stated: "The Internet is not under the line. If P2P is made offline, it will evolve into a fund pool after it is deviated from the platform operation function, and then it will affect the company's structure and reputation. There will be a shadow bank."

"Compared to the line, the offline business actually has many opaque areas. The same company has different business lines, whether internal funds are isolated, whether risk control is in place, and it is very difficult to judge them before the supervision level is in place." P2P company insiders such as evaluation.

Focus 2: Debt split is unknown or Ponzi scheme?

The reason that Creditworth can reach today's scale is inextricably linked to the “debt transfer” model it invented, but this model also raises criticism for the development of Creditworthy. "The transfer of bonds is legally no problem. For example, if you borrow ten thousand dollars for A, but you transfer the bonds to B, A can just return ten thousand dollars to B, but the problem with Credit is that it More than 10,000 yuan, it has a large number of investors and borrowers, and the scale of funds is also large. If it cannot match each borrower and investor in a timely and efficient manner, it will be difficult to bypass the suspicion of the pool of funds. "Everyone's fortunes, said CEO Xu Jianwen.

Xu Jianwen said that at the beginning of this model, it is difficult to ensure that investment and lending are completely matched. It can only be said that when the size and quantity are large, this mismatch can be minimized, but it is difficult to guarantee that. There is no deadline mismatch."

Before this, an insider of Yixin said in an interview with reporters that there was absolutely no problem with the misallocation of capital pools and deadlines, and its CEO, Tang Ning, repeatedly stressed: "We only subdivide the claims from the quota." However, most people in the industry told reporters during interviews: “There is no problem with the transfer of creditors in principle, but if we do not have deadlines at all, we cannot understand them.”

Some Guangzhou P2P executives told the reporter: “We don’t have a great fanfare to refute Yixin, but we really don’t understand it. Essentially, when there is money, there may not be enough exports. When there are exports, there may not be enough funds. The situation is very common."

"In fact, the transfer of creditors can indeed be more efficient, but it is very difficult to avoid the risk of capital pools. If everyone is doing this, it does not rule out the existence of Ponzi schemes," Xu Jianwen said.

Yixin model two major doubts

1 Is it P2P to develop online and offline?

In the five years since its establishment, Yixin has used P2P shells to circumvent institutional lending restrictions and used offline promotions to overcome the mode of excessively slow growth of online P2P models.

But the Internet does not exist offline. If P2P is made offline, it will evolve into a pool of funds after it is out of the operational function of the platform. Then, if the structure and reputation are influential, shadow banking will emerge.

2 The dismantlement and re-assignment of creditor's rights creates information that is not transparent

Instead of a direct P2P business model, CreditEase adopts a “debt transfer” model. It is not only that the credit controller acts as a fund intermediary in its own name, the borrower borrows personally from the credit controller, and then the controller has a large number of borrowers. Debt splitting, with different combinations of deadlines and other models packaged and transferred to the real fund transferor, from which to earn high spreads. Because the borrower has no direct contact with the real fund transferor, the information is not transparent due to the capacity, and there is a mismatch in the term, it is easy to form a pool of funds and deadline mismatch, and it is prone to bad debt ratio.

Know more D

Ponzi scheme

It is the oldest and most common form of investment fraud. It is a variant of the pyramid scheme. Many illegal MLM groups use this move to collect money. This deception is an “invention” by a speculative businessman named Charles Beaz. of. The Ponzi scheme is also known in China as "the demolition of the Eastern Wall to fill the Western Wall" and "empty gloves and white wolf." In short, it is to use the money of new investors to pay old investors the interest and short-term return, in order to create the illusion of making money and defraud more investment.