There is a big blank space on individual credit scoring in China. The national individual credit reporting system was founded in 2005 by the Credit Reference Center, a part of the People's Bank of China (PBOC). But at the end of 2015, only 870 million individuals were included in the database, and only 370 million people’ credit history was in the system, covering just 26% of the whole population. On Jan 5th 2015, the Chinese government authorized 8 companies to prepare their own personal credit scoring platforms. One of them, Sesame Credit, is owned by Ant Finance and is the largest platform, but remains unlicensed.
Yu’E Bao, the world’s largest money-market fund, may have to limit its individual investment amount at RMB500,000 (USD$72464), which is half of the amount the limit is now. The implications aren't for certain at this point, but it could mean the end of the platform's growth in the future.
A press announcement on April 10th 2017 showed that Tencent, a Chinese online giant, led an investment in India’s electronic commerce company Flipkart, alongside eBay and Microsoft. The total amount was $1.4 billion and Tencent contributed $700 million, eBay $500 million and Microsoft $200 million. This was the first investment for Tencent into India’s e-commerce market. But the question remains, will it be a good move for the company?
On the last day of March 2017, Wang’lian (Internet Payment Union) started its trial operation after one year of preparation. The first group of companies that have joined the platform include: Wechat Pay, China Merchants Bank, Bank of China, and Chinabank Payment. The platform will effectively cut the 3rd party payment networks of Ant Financial and Tencent, and is likely the most important payment industry development this year, and it may not bode well for China's dominant digital payment companies.
Last week, at The Fifth Session of the twelfth National People's Congress in China, Mr. Zhou Xiaochuan, the chief governor of People’s Bank of China (PBOC), encouraged the development of Fintech during the press conference among all topics about finance reform and development in China.
In the last year, Panda bonds (the name of mainland RMB denominated bonds from a non-domestic issuer) have become increasingly competitive and attractive for investors. What explains the increased usage of inland bonds in contrast to slightly diminishing performance of the Dim Sum (RMB denominated bond issued abroad)? How do we define the current interrelationship of the two. And what is in store for the future of the Chinese bond market?
Nothing is easy in the banking industry, and it's getting tougher in China. The Chinese central bank (PBOC) used to control banks’ lending and deposit interest rate by setting high and low limits, as the top line and bottom line in the chart. If a bank in China can always lend/borrow at the limit rates, the margin would not change much over the years. However, the story is not that simple.
In its recent mobile app update, Alipay has put its QR code for accepting payments away from the main screen to a separate button on the top right corner. This seemingly small technical change has operational and business implications too.
Over the past year, China's Consumer Finance industry has been attracting a significant amount of attention. It may be the next hot spot for financial development in China.
The new US President Donald Trump has made clear his intention to roll back, and possibly repeal, the Dodd-Frank Act of 2010. This will have wide-reaching repercussions for Asia.
China’s consumer finance industry is booming amid the rising level of consumption among the Chinese Millennials group, a population representing nearly one-third of China’s whole population. The scale of the industry has been pushed to RMB 107.72 billion by total asset value by September last year, almost doubling the scale of RMB 51 billion in 2015.
Last Friday, the People’s Bank of China (PBOC), China’s central bank, issued a new notice for the third party payment companies which will be enacted on April 17th, 2017 and will require the payment companies to deposit around 20% of the held customer fund to specified general bank accounts.
The first batch of Chinese credit scoring companies has been waiting for their licenses for 24 months now. What are the reasons for the delay and how has the recent Alipay Circles incident affected the formal launch of the industry?
NFC standards have been agreed and in place for just over 5 years in China, but have made little headway. On Monday this week, China UnionPay launched their own QR code solution. China UnionPay was one of NFC's primary supporters, so this shift to QR could mean the end of NFC in China.
Since the start of this year, there have been many news about the set up of “Wang’Lian”, which means Non Bank Internet Payment Union, in China.