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?
After over a year of incredible growth, Yuebao is starting to slow slightly and the expected returns on the platform are dropping down to about 4%, not entirely different than what is possible in a bank. In April 2014, Alibaba made a decision to roll out a new online finance product, a bankers' acceptance online lending.
Last week, Alibaba’s finance arm rebranded their “Small and Medium Financial Services Company today to “Ant Financial Services Group” or “Ant Financial”.
Mr. Li Xiaofeng, head of PBoC Financial IC Card Panel, believes that Chinese payment providers will not play a major role in payments in China's financial industry. “From the scale and channel perspective, Central Bank and commercial banks remain the main payment providers.”
Although Alibaba was in the first round of initial approvals to setup a private bank in China earlier this year, it was only at the end of September 2014 that they finally received approval to move forward on the project along with Juneyao, another large Chinese company who is also looking to setup their own bank.
In the wake of the largest IPO in the U.S., there has been increased attention on China's innovation and its potential disruptive nature on global banking and e-commerce. Yue bao's future strategy is in the spotlight once again.
China's online banking and mobile banking continue to be the key channels for customers who interact with their banks through 'e-channels' as data from iResearch, a Chinese online customer survey service provider, shows.
According to Online Lending House, an internet finance news source, P2P transaction volume has reached RMB 81.84 Billion in 1H2014. The most active regions are Guangdong, Zhejiang, Shanghai, Beijing and Jiangsu.
On July 25th, Shang Fulin, the chairman of CBRC, disclosed three private banks that had been approved by the CBRC. Hua Rui Bank, planned to be set up by Fosun and Juneyao, was not on the list. Later the Shanghai branch of CBRC revealed that the Fosun and Juneyao partnership had broken up.