Dianrong and FnConn have launched Chained Finance, a blockchain lending platform for supply chain companies; according to Soul Htite, founder and CEO of Dianrong, "Chained Finance creates a unique ecosystem that will provide supply chains with easier access to funding at competitive rates."; the companies report the platform could triple financing access for supply chain companies. Source
CredEx has developed a mobile app for loans in China; allows for borrowing of as much as RMB 300,000 (USD 43,000); the firm's business has been built around a focus on five factors including: mobile apps for loans, anytime access to borrowing and repayment, personalized interest rates, mobile internet risk control and uniquely connecting financial institutions with borrowers. Source
China e-commerce business JD.com has announced the sale of its finance business which is focused on payments and investments; company will sell JD Finance for 14.3 billion yuan ($2.1 billion) in cash while also retaining some share in its future profits; with the spinoff of JD Finance, JD.com's business structure will now be similar to the structure of competitor Alibaba who also focuses on e-commerce and has a stake in payments finance business Ant Financial. Source
Crowdfund Insider provides a roundup of news occurring in China's alternative finance market; the China Banking Regulatory Commission has released more details on its guidance for online lending partnerships with custody banks; also noteworthy is the potential initial public offering in the US by China Rapid Finance. Source
In business for six years, Lufax has expanded to meet a growing market demand for fintech products in China with a number of factors helping its success; beginning as a P2P lending firm with the support of Ping An the firm has been able to expand its business to wealth management and overall sees an underserved domestic market of over one billion people interested in the firm's solutions; it now has over 25.5 million registered users, RMB390.92 billion ($57 billion) of retail assets and RMB111.65 billion ($16 billion) of loans under management; it has been able to successfully navigate the market challenges with help from Ping An and is now approaching an even more global introduction through its potential initial public offering expected for later this year in Hong Kong which could raise approximately $5 billion for the firm. Source
Noah Holdings Limited, a wealth and asset management services provider in China, has announced its fourth quarter and full year results for 2016; the firm has two leading services including asset management and internet finance; net revenues for the full year 2016 were RMB 2,513.6 million (US $362.0 million), an 18.6% increase from 2015; for the year the firm reported an operating margin of 26.5%, compared to 26.4% for 2015; the firm's internet finance business is led by Mr. Kenny Lam, who reported that the company was pleased with the results, also stating that, "Our newer businesses – asset management and internet finance – are bringing impactful results to the group." Source
In collaboration with Energy 4 Impact, UKAid and the CME Group Foundation, the Cambridge Center for Alternative Finance has released a study on crowdfunding and P2P lending in Africa and the Middle East; Lend Academy provides details of the report in their article; covers 46 countries in Africa and 12 countries in the Middle East, featuring data on 70 alternative platforms. Source
The People's Bank of China (PBOC) is testing digital currency in efforts to become one of the first central banks to issue digital money; China's population has been increasingly using digital forms of payment with approximately 450 billion mobile users reported in 2016; a cryptocurrency would likely be popular among consumers and is also expected to lower transaction costs for sellers; a digital currency could also help the PBOC to more efficiently manage risks in the financial system and economy with a better way for tracking transactions; the PBOC has outlined how a digital currency would work but it has not announced a specific timeline for implementation. Source
China's State Administration of Foreign Exchange continues to closely monitor foreign investment with no change reported to the limit for its qualified domestic institutional investors (QDII) scheme following its most recent meeting; the outstanding investment quota under the QDII scheme, which allows investment managers to raise funds and convert them internationally, was US$89.99 billion at the end of February; the country continues to seek to protect its currency from depreciating with the foreign investment quota. Source
Lufax sees a growing market opportunity in China's retail investment space and is planning to increase its focus on this area of the business; the firm is currently the world's highest valued P2P lender at $18.5 billion; it has $56.9 billion in client assets with P2P loans accounting for a third which is expected to decrease to 15%; it plans to expand the investments it offers through online brokerage accounts and also enhance its mobile and online trading capabilities; the firm is also rumored to have plans for an initial public offering in Hong Kong in the second half of 2017. Source