Recently we often heard two expressions, one is “winter capital” the other is “o2o death list”. Through it, let` s speculate the future industry trend for P2P and the most important thing is if your pocket is safe when you buy it.

“Capital winter”

Recent months, the secondary market in and out the country plummets in avalanche type, and the effect will spend a half year to conduct to primary market. The first eliminative companies are these only depending on over and over “blood supporting” of capital raising to hold out the business increasing because they don` t have money to burn.

“O2O death list”

cle, it covers in 16 fields and thousands of big and small enterprises failed. After a sigh we must be cautious on this type of industry depending on “subsidizing economy”, especially P2P.

Before shaking their hands between the 2 cab-catching software companies of Udache and Kuaidadi, 2.4 billion Yuan burned and most of the small similar internet flat burnt to death. From customers` side, they have 2 selections, which would save more time? Which is cheaper? No matter how it relies on scale economy. Finally, two giants survive in this field with several minor providers to refresh the sense of presence occasionally.

Actually, P2P is more simple and crude than cab catching, as for customers merely care about two things: who earns more benefits, who has less risks, but it needs to depend on scale economy to realize. Which platform lending fast with better service will absorb more people, simultaneously, more users could search more risk control statistics and control it better.

To put a comparative perspective

Traditional variety of investment has over 10% yield rate product in annual, but it has been called “junk bond”, popular speaking, bonds issued by some companies or organizations with weak repaying ability provide such high yield rate in order to subsidize investors who might burden higher risk.

The same thing in domestic called “privately bonds raised by small and medium-sized enterprise”, its issuers are small-sized with relatively high credit risk whom cannot go public. The highest nominal interest rate reached to 12% when the experimental unit launched in 2012, because of frequent contract violation in recent years it has been stopped by supervisor. Before the ceasing, the total rate of contract violation for this type of product was over 3%.

Two advices to these investors who is investing or preparing to invest P2P:
1.The credit level of borrower in P2P is less than junk bonds, so more problem will appear in probability. It would be unsustainable when the rate of bad account increases to a level, most of them will become a Ponzi scheme either depending on financing blood transfusion or repaying the former debts from latter investors.
2.If you decided to participate, please do not study further or deeper and make a preparation in advance for principal loss, never put the most funds to invest P2P.