The highest court in China publishes information on their website of those who have failed to repay loans; debtors are unable to fly domestically, use the high speed train system or enroll their children in private schools; individuals also have a number of other restrictions; the ban works by linking a person’s ID number; the list launched in 2013. Source
Recently Morgan Stanley published research sharing that digital payments penetration in India could increase from 5% today to 20% in 2027; the e-commerce market could reach $200 billion with 475 million shoppers by this time; the author delves deep into the Chinese and Indian payments markets, sharing why America could miss out on India’s fintech revolution. Source
Historically online lenders have relied on a wide range of alternative ways of evaluating borrowers; the state-backed National Internet Finance Association of China which is aligned with China’s central bank has provided some details on developing a credit rating system; some industry participants question whether they will be able to overcome issues that have prevented similar plans in the past. Source
Jianpu listed on the NYSE on November 16th under code JT; it is the fourth fintech company to IPO in the US in the second half of 2017; others included Quidian, Hexindai and PPDAI; Jianpu is a subsidiary of Rong360 and has an active user base of 95.8 million; the platform has provided 170,000 financial products in more than 350 cities. Source
Shares began trading on the NYSE this morning under ticker PPDF; shares were priced at $13 and the company raised $221 million; the company launched in 2007 and has over 57 million cumulative registered users; it targets borrowers between 20 and 40. Source
A new study has found that borrowers in China are taking out loans from multiple platforms; of 61 online lenders in the study, 44% of their customers borrowed from multiple sources; it is difficult to prevent against this since p2p lenders don’t have access to all of the credit data of their borrowers and there is no centralized place for platforms to share data; the study was done by the Beijing Internet Finance Industry Association. Source
Junheng Li, founder of an independent research firm focused on Chinese companies provides an update on lending in China with the recent news of tightening regulation. Source
The new regulation came from a new state body focused on regulating internet finance; it put a stop to new approvals of offline micro lending companies; companies already in operation may see heavier regulation which has caused drops in the share price of recent IPOs including ZhongAn, Ppdai and Qudian. Source
China and Hong Kong have raised $3.03 billion in proptech since 2013; this is approximately 41% of the total investment in proptech across the globe; the startups are focused on brokerage and leasing, investment and financing, project development and property management; half of the startups are in brokerage and leasing; article shares what has led to the current robust proptech market in Asia Pacific. Source
Hexindai, a Chinese fintech company listed on the Nasdaq last Friday; according to the article Chinese firms are getting pressure from investors who want to cash out; tightening regulations are also a factor; Qudian, another firm went public last month and Rong360 may be the next Chinese fintech company to go public; Oliver Wyman reports that the market size for consumer lending will expand to $620 billion by 2020 with a compound annual growth rate of 49%. Source