Today I read an article from the TechCrunch.com regarding a startup from Shanghai: http://www.qifang.cn, a stealth P2P lending site for Chinese student loans.

http://www.techcrunch.com/2008/02/13/chinese-stealth-startup-qifang-wants-to-bring-p2p-lending-to-the-mainland/

I posted a quick comment there and now I copy it here for your reference.

It’s really nice to get to know a startup qifang.cn from China here from TC. Looking forward to more news about startup and investing activities in China. Thanks, Eric.

Absolutely student loan is highly demanded in the China education market since the involvement from China government is very weak in this area when compared with any developed countries. So if qifang.cn succeeds, that would help more young Chinese people to get higher education which is good for every one both in short term and long term.

However, I’m quite curious how qifang.cn will work out in China, given that no national credit system has been built in China so far. The losing face thing mentioned by Calvin Chin is just an emotional incentive for a student to pay the loan, which makes no business or legal sense. As far as I know, for some people who are in a disadvantaged status, they would prefer to lose face if they can try all their best efforts to avoid a loan as little as $1k. This is really bad but it is reality.

With that being said, I don’t think qifang.cn could be a quick win from an ROI perspective. As a common sense, investing in education is a long term thing so you can not get the return so quickly. Since I’m learning to become an angel investor, I’m quite curious when those angel investors of qifang.cn are expecting to exit this venture.

Anyway, good luck to Calvin Chin and all Chinese students who are financially stressful to finish their college education.