As the state strengthens supervision of the P2P industry, more and more P2P platforms have been shut down or rectified. Among them, Huhubao, as one of the largest mutual insurance platforms in China, cannot escape the fate of being shut down. As soon as the news of the closure of Huhubao came out, it aroused widespread attention and discussion. This article will analyze the reasons and impacts of the shutdown of Huhubao, as well as the strengthening of supervision of the P2P industry.

The reason for the closure of Xiang Xiang Bao

As a leading company in the field of domestic mutual insurance, Xiang Xiang Bao once attracted much attention. However, since 2018, Xianghubao has been in trouble. On the one hand, the number of users of Xiang Hu Bao continues to increase, but the platform’s risk control capabilities have not been improved accordingly, resulting in the continuous accumulation of platform risks. On the other hand, Huhubao’s operating model has also been questioned. Hu Hubao’s mutual insurance product is not real insurance, but a way of mutual assistance and sharing, which also makes regulatory authorities have doubts about it.

The impact of the shutdown of Xianghubao

The impact of the shutdown of Xianghubao on the P2P industry cannot be ignored. On the one hand, the shutdown of Huhubao will trigger panic among users and hit user confidence in the entire P2P industry. On the other hand, the closure of Huhubao will also sound a warning to other P2P platforms, prompting them to strengthen their risk control capabilities, standardize their operating models, and avoid falling into similar predicaments again.

P2P industry supervision has been strengthened

Behind the closure of Xianghubao is the strengthening of the state’s supervision of the P2P industry. Since 2018, the state has continuously strengthened its supervision of the P2P industry, and a series of policies and measures have been introduced to regulate the operations of the P2P industry. Among them, the most important is the formal implementation of the "Interim Measures for the Management of Business Activities of Online Lending Information Intermediaries". The Measures clearly stipulate the entry threshold, business scope, risk management, information disclosure and other aspects of P2P platforms, making the supervision of the P2P industry more stringent.

How to respond to the strengthening of supervision of the P2P industry

Faced with the strengthening of supervision of the P2P industry, how should P2P platforms respond? First of all, P2P platforms must strengthen risk control capabilities and strictly review borrowers’ qualifications and repayment abilities to avoid bad debts. Secondly, P2P platforms must standardize their operating models, strictly abide by relevant laws and regulations, and protect the legitimate rights and interests of users. Finally, P2P platforms should strengthen information disclosure and promptly publish platform operations and risk warnings so that users can have a clearer understanding of the platform's operations.