Happy Holidays from Kapronasia!
Happy holidays from the whole team at Kapronasia! We're off this week as well and will be back online January 5th. We're looking forward to an exciting 2015 kicking off with our annual 2015 Top-10 trends in fintech research Reports. Details soon and hope to have you there for the webinar!
Alibaba finds success with another self-created holiday: Double 12
December 12th, 12/12, or Double 12, was Alibaba's sequel to the highly successful Singles Day (November 11th). The difference this time though was the incredible focus on and success of the online-to-offline commerce push.
Alibaba is yet again launching another investment product, and this time it will give its Alipay customers the option to invest in gold.
China UnionPay’s strategy for mobile payments and Android Pay
This is part two of a two part series looking at China Unionpay's launch of Android Pay. Part one examined the potential impact of Android Pay on the mobile payment industry. Today we take a look at China Unionpay's business strategy in the mobile payments space as it launches Android Pay. We also answer the question of why China UnionPay would even be interested in having their own mobile payments app in the first place.
First signs of the Alipay Apple partnership?
The new version of the popular Chinese payment app Alipay now supports Apple’s fingerprint touch sensor for account access and payment authorisation instead of a password.
Tencent's Webank approved for operation
On December 12th, Webank, the proposed bank from Tencent received regulatory approval to start operations.
Conventional wisdom and the written history of capital markets would have it that the value of a particular stock is based on the potential of future returns in the form of dividends and the underlying book value of the company. Not ones to stick with tradition, China’s mainland investors have often defied this basic tenant of reason and developed their own ideas about what the price of any particular stock should be.
Alipay pushes global expansion strategy through transit cards
Alipay is making headway on its promises to expand globally and has now entered into an agreement with several foreign transportation card firms, which will allow Alipay users to buy transport service cards through the Alipay app as they travel abroad.
Kapronasia releases comprehensive China P2P Lending Research Report
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.
This is part one of a two part series concerning China Unionpay's launch of Android Pay. Today we take a look at Android Pay's potential impact on the mobile payments industry. Part two will look at China Unionpay's business strategy within the mobile payments space as it launches an Android based mobile wallet.
PBOC drafts outline for long-awaited deposit insurance scheme
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.
GlobalCollect - UnionPay tie-up is bigger deal than most think
The recent annoucement of the tie-up between GlobalCollect and China UnionPay tie-up could be a game changer for China UnionPay's international business.
Shanghai Composite Index hitting new highs
After years of bearish sentiments among Chinese investors, the Shanghai Composite Index seems to be picking up again and rises to highest level since August 2011.
Alibaba pours more money into Hundsun, this time in market data
Alibaba's not so subtle move into China's financial services industry took another step forward today with an additional investment into financial data and software provider Hundsun.
99Bill, a Chinese payments company, was just acquired by Baidu for RMB 2 billion. While there was no official confirmation from Baidu yet, the rumors started appearing on November 18. As the deal comes through, it will be yet another instance of a tech company moving into online finance. Alibaba through Alipay and Tencent through Tenpay already have payments licenses and operate successfully in the industry. Only Baidu was the last company of the three technology titans without a considerable traction in online finance. Its Baidu Wallet is still in promotion phase and is yet to gain a user base comparable to that of Alipay or Tenpay wallets.
According to new data released by China Securities Depository and Clearing (CSDC), Chinese investors have opened 243,073 new A-share accounts in the period between November 10th and November 14th.
New RMB cash pool in China regulation is a boon for multinationals
The PBOC has issued implementation rules for RMB cash pooling in China, which will facilitate cross-border RMB sweeping for multinationals, previously restricted to the Shanghai Free Trade Zone (FTZ).
Chinese P2P lending risks continue to rise
October has been a tough month for China's P2P lending platforms as more and more are pressured to shut down due to capital shortages and fraudulent behaviour.
The Next Big Thing: China's Digital Banking
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.
The Empire Re-emerges: Baidu Launches Baifa 100 Index Fund
Baidu Baifa 100 Index Fund, the first big data-based quantitative strategy fund in China, announced that it was closed for new investors only 24 hours of online sale at 15:00 on October 28th.
Bitcoin mining in China on your own is over
According to the latest hardware specifications of bitcoin mining manufacturers, even with it no longer makes sense for individuals to mine on their own - even in China where electricity is somewhat cheaper. Except if they are willing to wait a long time.
Can Ripple make a splash in China?
Ripple Labs announced partnerships with two U.S. banks, which will allow their customers to make same-day distributed money transfers at a very low-cost. How about partnering with Chinese banks? Could Ripple in China work with banks in a space where Bitcoin in China has struggled?
Alipay Wallet hits 190 million Users
The recent announcement that there are now 190 million Alipay wallet users has confirmed Alipay as a real heavyweight and innovator within the mobile payments industry. What are the barriers for future growth?
Should we even care about a potential Apple - Alibaba tie-up?
Alibaba and Apple were in the same sentence quite a bit this week as rumours floated about a potential Alipay / Apple Pay tie-up. Beyond a potentially very unique name for a new payment service, what would a potential partnership bring to the table for the companies and consumers?
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?
HK-Shanghai (Broken) Connect
How’s that trading on the HK-Shanghai coming for you today? We had hinted at it before in the previous couple of weeks, but it looks like the HK-Shanghai connect is delayed indefinitely with some sources saying anything from a two week to two month delay.
Alibaba's Bankers' acceptance online lending product, another online finance innovation coming from China?
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.
What Apple Pay means for China
The launch of Apple Pay will likely have a profound impact on the payments industry in the US and potentially Europe, but what does it mean for China?
Alibaba rebrands Ant Financial; now dominating world banking?
Last week, Alibaba’s finance arm rebranded their “Small and Medium Financial Services Company today to “Ant Financial Services Group” or “Ant Financial”.
What the Future holds for Bitcoin and Virtual Currencies
Bitcoin has seen its reputation in the eyes of the general public drop following various security breaches (i.e. Mt Gox) that have left many uncertain about the digital currency’s legitimacy and future. In addition, people are starting to question if Bitcoin really has a place in the market and if there is actually a problem that it solves – there is almost a malaise in the eyes of many who are getting tired about reading about it. Although Bitcoin might be hitting headwinds, security enhancements are underway and blockchain technology seems to be thriving.
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Strong RMB growth continues
According to the latest SWIFT RMB Tracker, the number of financial institutions adopting the RMB has risen by 35% with global RMB payments tripling in value over the last two years.
Payment Providers Face an Uphill Battle with Banks
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.”
Account unification will squeeze broker commissions in China
Starting from October 8th China Securities Depository and Clearing will assign a single unified account number to all A-share and closed-end mutual fund account holders. Previously, accounts were separated to the respective Shanghai and Shenzhen branches of the clearing company.
What to expect from the Shanghai-Hong Kong Stock Connect?
The Shanghai-Hong Kong Stock Connect Program is launching in mid October and significant changes to the Chinese capital markets landscape are to be expected. Also labeled as the (new?) “Through Train”, this program will give foreign retail investors access to 568 Shanghai-listed stocks, with a market capitalization of roughly USD 2 trillion, and many are already waiting in anticipation for the door to be opened. A brief analysis of the Shanghai Hong-Kong Stock Connect.