China’s peer-to-peer lending sector is storming

Around 80 investors in failed lender Xinhehui protested outside the Hangzhou headquarters of a Meidu Energy Corp. on January 22th 2019.

The investors voiced their fury to put pressure on the company to pay off the defaulted products and demanding a $330 million bailout.

According to a statement on Xinhehui’s website dated January 14th 2019, a majority of votes cast approved a restructuring plan.

Shanghai-listed Meidu Energy said earlier this month that it owns a 34% stake in Xinhehui.

Chinese leaders are dramatically shrinking the P2P market, which spawned the nation’s biggest Ponzi scheme, protests in major cities, and life-altering losses for thousands of savers. Authorities are planning to wind down small- and medium-sized P2P lending platforms nationwide, Bloomberg reported late last year.