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·Jan. 24, 2019

Chinese P2P Lenders Face IPO Challenges

The biggest investment banks including Goldman Sachs and Citi have stopped taking Chinese p2p lenders public as a result of...

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Asia/Pac Fintech News Roundup

·Feb. 28, 2017

Chinese Regulatory Agency Reports No Change to QDII

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

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Fintech News Roundup USA

·Aug. 15, 2017

Comparing US and China Regulatory Environments for Fintech Innovation

Regulation in the US is far different than in China; CredEx is a Chinese company that shares the state of regulation there; Jo Ann Barefoot shares her perspective on regulation in the US, having spent most of her career working in consumer protection and financial inclusion; she believes that we have produced a regulatory system that has high cost and low value which has left consumers confused by products; while not discounting the importance of regulation, Barefoot shares that fintechs can do more to further goals around financial inclusion than regulation can; one area where the US is lagging behind much of the world, specifically China is in mobile adoption and regulators in the US are struggling to keep up as technology quickly changes. Source

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Asia/Pac Fintech News Roundup

·Dec. 27, 2016

Cosun Group Bonds under Pressure after Sale through Zhao Cai Bao

The Cosun Group has told investors it will be defaulting on $45 million worth of corporate bonds issued to investors through online platform Zhao Cai Bao; the online platform is run by Ant Financial Services Group, an affiliate of China's Alibaba Group Holding Ltd.; the bonds should be insured by Zheshang Property and Casualty Insurance Co. Ltd. however China Guangfa Bank is claiming the insured documents are fake; Ant Financial is working to help investors receive the insurance payouts for the bonds and says Zheshang Insurance has no reason to refuse payment which should have been made within three days of default. Source

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Asia/Pac Fintech News Roundup Online Lending

·Feb. 7, 2017

Credit China Fintech Plans Near-Term Investment

Credit China Fintech plans to expand its investments in peer-to-peer lending and payment companies; it invests in companies in the fintech industry and has recently invested in Ping An Securities Group Holdings Ltd. and blockchain technology firm BitFury Group Ltd.; recent investments have caused some scrutiny from short seller Anonymous Analytics which negatively affected the stock price in December 2016; the firm's stock price has regained its value since then with a current market capitalization of approximately $3 billion; over the past three years the firm has raised HK$4.3 billion ($554 million) and it plans to acquire at least one more company in the first quarter of 2017. Source

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Peer to Peer Lending

·Dec. 28, 2015

Chinese Regulators Release First Draft Of Rules For Peer to Peer Lending Industry

Chinese regulators released a draft of new rules for Chinese p2p lending platforms today. According to several reports, the China Banking Regulatory Commission...

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Fintech News Roundup

·Feb. 16, 2018

Commercial Banks Pushback on New Regulation in China

New regulations on asset management will increase capital that institutions have to hold in China; these regulations will significantly affect bank and nonbank relationships; banks have repackaged loans and transferred them to brokerages and other lenders which eventually make their way to investors; last year these transactions totaled $3.5 trillion in off-balance sheet lending according to the Wall Street Journal; one example of a lender that has been fined is China Guangfa Bank which turned loans going sour into high yield investments. Source

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Fintech News Roundup

·Jan. 8, 2018

Consumer Loan Securitization Market in China May Slow

Micro-lenders in China have brought billions of packaged consumer loans to institutional investors in China; the market this year though may slow due to regulatory scrutiny according industry sources; the current leaders in this space include Ant Financial Services Group as well as groups within JD.com, Baidu, VIPShop Holdings and Xiaomi Technology. Source

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Asia/Pac Fintech News Roundup

·Jan. 23, 2017

Credit China Fintech Acquiring Equity in Ping An

Credit China Fintech is forming a consortium to acquire a 36.58% equity interest in Ping An Securities Group (Holdings) Limited; upon completion the consortium intends to make a cash offer for all of the issued shares of Ping An Securities; Credit China Fintech's CEO Phang Yew Kiat says, "Ping An Securities' product offerings are valuable resources that we believe will generate significant synergies with our existing businesses." Source

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Asia/Pac Fintech News Roundup

·Jan. 23, 2017

CreditEase CEO on Recent Market Trends and Opportunities in China

Ning Tang, founder of CreditEase speaks about 2016 headwinds faced by Yirendai, the company's P2P lending arm; in August, 2016 the stock declined after new rules were put in place by Chinese authorities on P2P lenders; according to Ning Tang, "We need to do more in terms of investor education and communication as most of the international investors do not have a clear understanding of China's credit market and financial innovation."; 2016 transaction volume was 20 billion yuan ($2.92 billion) in 2016; Tang eyes 100 billion yuan ($14.59 billion) by 2020; looking forward, the company plans to form closer relationships with traditional banks to reach offline customers. Source

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