Abstract: China’s peer-to-peer lending platforms have been exited or transformed after frequent explosions, however reviewing the history of platforms’ explosions is significant for us to understand the development of early Fin Tech such as peer-to-peer lending platforms and to think about the future development path of Fin Tech. Taking 9,3674 dynamic weekly transaction records of 1700 platforms from January 4, 2015 to December 25, 2016 as samples, the competition effect and contagion effect of explosions are tested in this paper. The results show that:(1) The competitive effect is larger than the contagion effect, reflecting the public’s trust in thepeer-to-peer lending industry.(2) Next, the factors are tested which could affect the intensity of the competitive effect. It is found that the lower the level of competition, the stronger the competitive effect, the influence of “big” platforms’ explosions on the peer-to-peerlending industry is more intense and investors have more confidence in platforms with state-owned background. (3)In the long run, problem platforms’ explosions will reduce the probability of future exploding of the existing platforms.These conclusions provide an important reference for the development of Fin Tech. Government should win the trust of the public and strengthen the supervision of the industry, so as to realize the virtuous circle and sustainable development of Fin Tech.

Key words: problem platforms’ explosion;competition effect;contagion effect; state-owned background