JD Finance has removed its second peer-to-peer (P2P) lending feature from its app after it had been online for less than 10 days, highlighting difficulties in China’s P2P loans sector.
Despite initial reports of the feature’s disappearance, Hefeng Online Lending was still available until 4 pm on Wednesday. Previously, all products were labeled as being “sold out” after it was removed from the app’s main page. It has subsequently been completely removed.
This year has been one of crisis for China’s P2P lending market as the central government cracks down on small and medium-sized P2P lending platforms amid increasing default rates. According to US-listed financial company Rong 360’s research institute, users from a total of 841 Chinese P2P loan platforms had trouble withdrawing their money between February and November.