The risk of China’s financial crisis cannot be ignored, and the news of China’s P2P lending platforms bursting into flames is endless. Recently, it was rumored that Shenzhen-based Maverick Capital was suspected of illegally absorbing nearly NT$42 billion in funds, and a criminal case has been filed against the platform, with a total of 63 employees being arrested to make up for it.
China’s P2P platforms have been raising money through illegal fundraising to support loans, and eventually the outflow of funds has caused the outstanding loans to exceed their capacity and burst into flames, giving rise to many financial refugees who have lost their money, including: Nine Rich Puhui and Phoenix Financial, which are all such cases.
The Chinese Communist Party announced in 2017 that it would consolidate the P2P industry and recently announced that the 5,000 P2P lenders in China have been zeroed out. But even though there are no more P2P platforms on the table, the huge risk of illegal fundraising remains. Recently, it was revealed that “Maverick Online”, which announced its withdrawal from the P2P online platform in May 2020, still owes 10 billion RMB.
“Maverick Online was officially launched in June 2013 and has achieved a cumulative turnover of RMB 117.174 billion (about NTD 503.8 billion) with 6.08 million registered users, making it one of the largest P2P platforms in Shenzhen.
“After Maverick Online announced its exit on May 9, outsiders projected that it still had 11.344 billion yuan (about 47.645 billion Taiwan dollars) outstanding at the beginning of August, according to the outstanding payment figures announced on its official website.
According to media reports, even though Maverick Online has promised to gradually close its stock of online lending business, it has only repaid 238 million yuan (about NT$999 million) since May, a payout ratio of only 2%, which means it still has as much as 11.156 billion yuan to repay.
The media reported that “Maverick Online” was investigated on the 13th of this month for “suspected illegal fund-sucking” and about 63 company personnel were arrested. The outside world is concerned that the parent company of Maverick Online, Maverick Capital, which also has platforms including Maverick P&W, Maverick New Wealth, Maverick Investment and Maverick Dingfeng Technology, whether there is also a risk of mines, remains to be seen.
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