Regulation of peer-to-peer lending in Hong Kong: state of play

Peer-to-peer (P2P) lending is making a significant impact in the consumer credit and investment community around the world. However, because of uncertainties surrounding the regulation of P2P lending in Hong Kong, it remains in its infancy and market players have not stepped up to address the growing consumer credit need. This article looks at the potential regulations which might apply to P2P players in Hong Kong operating the two most common P2P lending models: the notary and the client segregated account model. This article then briefly proposes a possible way for Hong Kong to regulate the activity in the future, bearing in mind the need to protect borrowers and lenders.