China Banking and Insurance Regulatory Commission has strengthened the supervision of the network mutual assistance platform, which has limited the development of some mutual assistance platforms. Since most of the funds of these mutual aid platforms have no legal status, the CBRC has severely cracked down on these illegal financial activities. Once it is detected by China Banking and Insurance Regulatory Commission that the network mutual assistance platform has huge defects on the one hand, it is likely to encounter huge risks, and even lead the company to pay a large amount of fines and even go bankrupt. Therefore, many network mutual aid platforms choose to stop to avoid greater losses.
The mutual aid company's announcement of bankruptcy is also to prepare for its listing. For example, Shuidi once released the idea of listing, and twice applied for listing, but neither was approved. But for Internet companies, one of the conditions for listing is to have a rational risk planning.
Affected by the epidemic, many network mutual assistance platforms are in a state of net loss. At the beginning of the establishment of the network mutual aid platform, it was generally in a state of loss, and it took several years to reach the normal profit level. The sudden outbreak of the epidemic has also caused a huge blow to these network mutual assistance platforms, so many network mutual assistance platforms are in a state of net loss.
During the epidemic, some enterprises and companies declared bankruptcy, and some small shops could only continue to sell in other places or close down directly because they could not afford the rent. The network mutual aid companies such as Shuidi and Relaxation are no exception, and they will face all kinds of practical problems, so they chose the measures of timely stop loss and strong men breaking their wrists? Declare bankruptcy to avoid the phenomenon of living beyond one's means.
It is a direct way for them to get rid of China Banking and Insurance Regulatory Commission's strong supervision, a prerequisite for re-planning the listing, a sign of timely stop loss in the face of the epidemic, and a general trend.