A few days ago, the upstart Chinese manufacturer of android-based smartphones Xiaomi launched a public beta of their new online money-market fund. With Chinese tech companies furiously investing in and creating platforms bundling key products and services together, could we see Xiaomi competing directly with Alipay and Wechat in the near future?
The China Banking Regulatory Commission (CBRC) released its annual banking industry statistics for 2014. Banks accumulated RMB 172.3 trillion in assets, up 13.87% since 2013. The Big 5 large commercial banks had a slower growth rate than the joint-stock commercial banks, 8.25% and 16.50% respectively.
The recent PBOC annual Payments Industry Overview report shows plenty of impressive data and the main message that comes through is that "everything is growing". However, not all growth is the same and the numbers for credit cards industry are especially interesting.
Personal credit ratings in China have never been a pretty subject. Without a centralized credit database accessible to all, getting accurate credit information has proved challenging for any company in China providing loan products. With Ant Financial, the financial arm of Alibaba, launching Sesame Credit, we felt it was worth taking a second look at what might be happening here.
It's official. Although the bank has already technically been approved (several times), it seems like WeBank, 30% owned by Tencent, will finally make its big splash on January 18th.
According to data from Online Lending House, a China P2P industry data provider, as many as 92 P2P websites had issues in December 2014, significantly more than the 76 that had trouble in all of 2013, Some websites went offline temporarily, some products turned out to be fraudulent and some businesses were closed outright.
Sneaking it in while the west was busy sipping eggnog and taking a break, the Chinese government has big plans for expanding the Shanghai Free Trade zone geographically. The new zone will include some of the most important real estate in Shanghai including the Lujiazui Financial disctrict.
Kapronasia is pleased to release our P2P Lending in China report. Based on primary and secondary research, the report is one of the most comprehensive reports on the development of Peer to Peer lending in China.
For more information on the report click here.
The PBOC has announced it will be introducing a deposit insurance system in China, which will have a profound impact on banks’ behaviour. Liberalizing the banking sector may put it on a more sustainable path but short-term risks should not be ignored.
The digital revolution has finally caught up with the Chinese banking sector. As it undergoes important reforms, industry leaders are faced with numerous challenges and must innovate to stay on top of their game.
Like a piece of delicious cake, all good things come to an end and after robust growth since the launch, Yuebao has seen the first decline in 2014Q3. According to the data from financial news website East Money, although Yuebao has achieved 5.69 Billion in net profits, Yuebao AUM has declined 6.84% for the first time, reaching RMB 534.89 Billion. Is this part of a larger trend?