THE Shenzhen Internet Finance Association released a report stating that illegal operations on P2P platforms had decreased by 87 percent by the end of June, the Shenzhen Special Zone Daily reported.

P2P is a type of platform for online financial loans that has enjoyed great popularity and rapid development in recent years as it can provide convenient financial services for individuals, which has promoted the development of inclusive finance. The main problem with P2P platforms is liquidity issues caused by defaulting borrowers, according to the report.

Some recent media reports stating that companies on a platform went broke leaving 30 billion yuan (US$4.48 billion) unpaid are inaccurate and may lead to misunderstandings, the association said.

Research shows that the cumulative transaction turnover on the platform has reached 32.5 billion yuan since it was established in 2013, and the remaining sum to pay was up to 1.372 billion yuan as of June 2018, instead of 30 billion yuan as previously stated.

The association said the cumulative transaction turnover represents the sum of all transaction volumes on the platform since it was established online, and the remaining sum to pay represents the sum of the unliquidated principal and interest receivable held by all investors or lenders on the P2P platform. The remaining sum to pay corresponds to loan assets, which means that there will be no risk of payment if the assets can be returned normally.

(Cui Chenxin)