The Chairman of Fosun Group, Guo Guangchang, called China's $65.9B P2P lending market “basically a scam”, becoming the latest high-profile Chinese executive to attack an industry that has been plagued by scandal.
Billionaire Guo Guangchang called China’s peer-to-peer lending industry “basically a scam,” arguing that players in the multi-billion dollar sector, troubled by collapses and frauds, lack the ability to price risk. Guo was responding to a question at a post-earnings briefing by his conglomerate Fosun International Ltd. in Hong Kong about any P2P investments by the firm. Chief Financial Officer Robin Wang said “we never invested in any P2P projects,” while Guo, the company’s chairman and founder, jumped in to say that he’d never been optimistic about the industry in China. While acknowledging exceptions, Guo said that in general the country’s P2P operations were “rogue.”