Risk and Prevention of China’s P2P Platform

China’s peer-to-peer (also known as P2P) lending is an important part of China’s internet finance, which develops rapidly for the past few years. While the unbalance of the qualified lending platforms brings loss to the investors, which also causes bad social influence. In recent years, China continuously strengthens the supervision of P2P lending in policies and legal ways. At the end of August 2016, the CBRC, the Ministry of Industry and Information Technology, the Ministry of Public Security and the State Council Informatization Office issued the " Interim Measures for the Administration of the Business Activities of Online Lending Information Intermediary Institutions” to standardize the business activity of online lending information intermediary institutions, in order to promote the healthy development of the online lending industry. Considering the fact from both their own survival and the future of the whole industry, the P2P lending platform should be self-discipline, as well as improve risk awareness and draw much attention to risk prevention. Combined with our working experience in financial law, we analyzed a large number of the illegal cases of online lending. In this paper, we firstly introduce the management mode of P2P lending platforms, and then focus on the analysis of the online lending’s risk and prevention, finally we point out the opportunities and challenges of the whole P2P industry.