China: WeiyangX Fintech Review

People’s Bank of China Official Shares Opinions About Fintech Sandbox

During the third development forum held by Shanghai Payment & Clearing Association, Li Wei, head of the People’s Bank of China (PBOC) science and technology division, highlighted the importance of setting up trial-and-error mechanisms for China’s financial industry. He believes that China should speed up plans for the financial experimental field, letting Fintech be the first to benefit from the Sandbox. Additionally, Li Wei pointed out that regulators should take advantage of Fintech technologies to guard against and defuse risk with regulated Fintech participants. According to an informed source, there have been banks applying for cross-border payment service licenses from PBOC. Maybe it is the time that regulatory authorities make a trial of Blockchain technologies to monitor real-time data delivery and risk automation management. Source: Hexun

Pinganfang.com Caught up in US Crowdfunding Fraud

It is reported that investors of pinganfang.com were involved in a project to defraud in the US. Established in 2015, pinganfang.com is an online real estate crowdfunding platform of Ping An (one of China’s five leading Fintech groups). Investors from mainland China could invest in overseas crowdfunding housing projects through this online marketplace. The project that Pinganfang.com was caught up in is a sharing working place project called Bar Works. Every work place was sold at $25,000 and the minimum purchase quota per investor was two each. The expected annual rate of return was between 12% to 15%.  On June 30th 2017, the SEC charged Renwick Haddow (the planner of Bar Works project) with multiple counts, including illegal fundraising $36 million from the Bar Works investors. Chinese investors suffered when projects defaulted overseas. To address these concerns, Pinganfang.com has already hired lawyers to initiate lawsuits and help the platform’s investors to safeguard their legal rights.Source: 01caijing

[clickToTweet tweet=”Chinese investors caught up in #Bitcoin Store / Bar Works Fraud via Pinganfang #crowdfunding platform” quote=”Chinese investors caught up in #Bitcoin Store / Bar Works Fraud via Pinganfang #crowdfunding platform”]

JD Finance and China UnionPay collaborate in Blockchain-based risk management

On November 30th, JD Finance and China UnionPay co-launched a Blockchain-based risk information sharing mechanism. This is regarded as a joint effort to accelerate industrial information sharing and lay the foundation for a safe payment infrastructure. In fact, JD Finance and China UnionPay have already signed development agreements regarding underlying technologies of Blockchain, QR codes from China UnionPay and JD QuickPay. The announcement of the risk information sharing mechanism will first benefit the 104 members of Electronic Payment Security Union (EPSU). The industrial union includes card issuers, government agencies, commercial banks, third-party payment agencies, cyber-security companies, payment technology providers, e-commerce platforms, almost covering every stage of the payment industry. (Source: ifeng

[clickToTweet tweet=”JD Finance and China UnionPay collaborate in #Blockchain based risk management” quote=”JD Finance and China UnionPay collaborate in #Blockchain based risk management”]

Ant Financial Suspends Plans for Initial Public Offering

On December 1st, Alibaba officially set up a poverty alleviation fund. As planned, the fund will invest 10-billion-yuan in the next five years to establish a comprehensive security system and help people fight against poverty. At the fund launch ceremony, Jack Ma, the executive chairman of Alibaba Group, told the media that Ant Financial would suspend plans for an initial public offering. He believes that Ant Financial has not faced up with many challenges with an IPO but needs to launch a really strategic product first. Ant Financial is not far from launching such a product.Source: WDZJ

[clickToTweet tweet=”Ant Financial said to Suspend Plans for Initial Public Offering #IPO” quote=”Ant Financial said to Suspend Plans for Initial Public Offering #IPO”]

Tencent Reaches In-depth Fintech Cooperation with China CITIC Bank

On November 27th, Tencent signed an agreement with China CITIC Bank to deepen cooperation in the Fintech sector. According to the agreement, the two parties will identify cooperation priorities in cloud services, including the establishment of a financial big data platform, analysis and solutions for fraud risk, and construction of a security system. Apart from this, Tencent and CITIC will also cooperate on voice-activated mobile banking and agricultural financing through Blockchain, DLT database, Enterprise WeChat accounts and video streaming.Source: people.cn)

[clickToTweet tweet=”Tencent Reaches In-depth #Fintech Cooperation with China CITIC Bank” quote=”Tencent Reaches In-depth #Fintech Cooperation with China CITIC Bank”]


 

WeiyangX is the most influential website focusing on fintech in China. The site covers the latest news, industry data analysis, business practices, and in-depth fintech cases in fintech. WeiyangX is incubated by Fintech Lab. Founded by Tsinghua University’s People’s Bank of China (PBC) School of Finance in 2012, the Fintech Lab is the first and leading research entity dedicated to leading best practices, promoting interdisciplinary innovation, and encouraging entrepreneurship in the field of fintech through scientific research and innovative project incubation.

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