P2P innovation may bring market to new heights

China's P2P market will develop into the world's most advanced and efficient one through a series of technical, model and management innovations such as asset securitization, said Hao Jianming, chairman and CEO of Nasdaq-listed Sino Mercury Acquisition Corp (SMAC) which focus on P2P financial market with big data and cloud computing technology..

China's first P2P companies started operating in 2007, later than those in the United States. The industry saw rapid growth and popularization in 2012.

In 2014, P2P platforms in the United States issued approximately $5.5 billion in loans according to a PwC report in February.

In comparison, China's P2P trading volume was at 252.8 billion yuan ($40.78) in 2014, 2.39 times of that in 2013, according to the 2014 China P2P Industry Report issued by Shanghai Yingcan Business Consulting Co, China Center For Financial Research of Tsinghua University and Wangdaizhijia in January.

This means the trading volume of China's P2P market was over 7 times that of the US.

"How to build a stable and reliable risk control system to screen out qualified enterprises with repayment ability and willingness is the greatest challenge for the P2P market," said Hao in an interview with China Daily Online.

The development of the mobile Internet, the acquisition and analysis of big data and the application of cloud computing provide the possibility to rebuild China's financial business model, said Hao.

A new loan risk evaluation system for small and medium-sized enterprises will be built to break through the bottleneck of the risk control problem, Hao added.