China's online finance management market will grow to 10 trillion yuan ($1.5 billion) in 2020 on a rising middle class, Shanghai-based BundWealth said yesterday.
Increasing family wealth and the rise of the middle class in China will fuel the online finance management market, according to analysts.
"It's the best time for online finance management in China with both rapid growth and huge market potential," said Ma Zhubo, executive vice president of BundWealth, an online finance platform with 1 million users and trade volume of 1 billion yuan.
The demand for wealth management will grow rapidly when personal income crosses US$10,000 annually. In China, more than 10 provincial-level regions including Shanghai have hit the US$10,000 level by the end of 2015. The market will hit 10 trillion yuan in 2020, BundWealth, which cooperates with finance firms to offer users various products, said.
But investment risk has become a major concern in the P2P sector, observers said.
In March, 112 lending platforms had problems in their operations, up 40 percent month on month.
Stricter rules on the release of information and a crackdown on illegal financing have raised the threshold for newcomers and forced established platforms to straighten out their business.
