The large decline in the size and efficiency of the transaction is the main cause of the sudden drop in the China's net loan index. Data show that China's Internet lending index has lasted for eight months below the 100 demarcation line, the industry continues to shrink, facing a major test.
From the specific indicators of China's Internet lending index (scale, efficiency and transparency), the dimensions of indicators in July were significantly cooler than last month, especially the trading scale and financing rate indicators showed signs of overcooling, which is related to frequent thunderstorms on the Internet lending platform in July, intensified industrial turmoil.
In July, the national provincial net lending index was below the 100 demarcation line, showing a further contraction trend. In comparison, the shrinkage of Anhui, Guangxi, Hebei, Shanghai and Fujian is smaller. The tightening supervision and further clearance of the market in various provinces have led to the overall downturn and greater risk in the online lending industry.
The top 10 platforms accounted for 34.07% of the total volume of online loans in July, based on the volume of transactions in July 2008. Compared with the 30.51% increase in the second quarter of 2008, this indicates that the head compliance platform has developed and risen in the face of a major reshuffle of the online lending industry. The index of the platform represents its expansion or contraction compared with the last month, and the 100 is the dividing line.
In addition, the average interest rate of China's online lending industry was 9.96% in July, up 0.05 percentage points from a year earlier, and 0.21 percentage points from a year earlier. Due to the volatility of the Internet lending industry in July, some platforms raised interest rates to attract investors, resulting in a slight rise in recent interest rates.
Jinzhita China Internet Loan Index was launched in London and Hangzhou on July 24, 2017 by the Institute of Internet Finance, Zhejiang University (AIF) as the academic guidance (the AIF Southern Research Laboratory and the Internet Loan Research Laboratory of Zhejiang University) and the Hangzhou Jinzhita Technology and China Financial Information Network as the cooperative institutions. The monthly data were released at the end of each month.
By tracking China's Internet lending platform and proceeding from the essential characteristics of Finance and the Internet, China's Internet lending index builds an index system with three first-class indicators of the scale, efficiency and transparency of the Internet lending industry and five second-class indicators of platform size, transaction size, user size, financing rate and industry associations, and then uses a large number of indicators. According to the quantitative analysis of various indicators, a set of China's Internet loan index system with sustained stability, wide coverage and strong representativeness has been established. The index fluctuates around 100, with more than 100 indicating that the industry is expanding, and less than 100 indicating that the industry is contracting. The larger the index, the greater the expansion.
In order to obtain accurate and objective data of China's Internet loan index, the breadth and representativeness of the data are fully considered in the index compilation process. As of June 2018, the data collected during the compilation of China's Internet Credit Index covered more than 900 normal domestic Internet credit platforms. In terms of time span, the index collected data from January 2017 to June 2018 in China.Visit: