One of China’s top peer-to-peer (P2P) lending platforms, tuandai.com, collapsed last week, resulting in financial losses for scores of Chinese investors. The platform owners Tang Jun and Zhang Lin surrendered themselves to police on March 27.
P2P allows people to lend to each other while earning high-interest rates—higher than those offered by banks. Firms that operate a P2P platform connect yield-hungry investors with cash-strapped individuals or small businesses.
