The People’s Bank of China Releases Financial Stability Report with Special Focus on Online Lending
The People’s Bank of China (PBC) released the 2019 China Financial Stability Report lately, which gives a comprehensive review of the soundness of China’s financial system since 2018. While incremental risks related to institutions of special concern and all sorts of illicit financial activities have been contained effectively, more work needs to be done to resolve existing risks. As financial markets are highly sensitive to external shocks, the risks of abnormal market fluctuations should be closely watched.
It should be noted that the report presented special attention on the risks related to Fintech, especially online lending sectors.
According to the report, online lending institutions in China have decreased from 5000 to 1490 through targeted rectification.
By the end of 2018, the balance of personal loans in the Fintech industry (including online lending, micro-lending, consumer lending) decreased by 22.7% year-on-year, and the growth rate decreased by 63.6% compared with 2017. (Source: WDZJ)
Beijing’s First Fintech Sandbox will be Launched in Xicheng District
This week, the “2019 Beijing Financial Industry Development Report” (hereinafter referred to as the “Report”) was released at the 2019 (Fifth) Beijing Financial Forum held by the Beijing Commercial Research Institute.
According to the Report, up to now, Beijing has approved 46 Fintech pilot projects, ranking the first among the top ten Fintech innovation pilot provinces and municipalities.
Besides, Beijing has now attracted more than 100 Fintech companies which generate over 100 billion yuan of income. Sun Shuo, member of the Beijing Xicheng District Committee of the Communist Party of China recently revealed that Beijing’s irst Fintech sandbox mechanism would be launched in Xicheng District. (Source: cnstock.com)
01Caijing.com Publishes China Blockchain Investment and Financing Report 2019
On October 30th, 01Caijing.com published the “China Blockchain Investment and Financing Report 2019”. Here are some key points from the report.
1) The number of financing events decreased by 50% year-on-year, and the financing amount decreased by 75% year-on-year; the average single financing amount did not change much, and remained above 70 million yuan.
2) There is still a gap in the development of blockchain between China and US. The amount of Chinese blockchain company/projects funded is slightly higher than that of the United States, while the financing amount in China is only a quarter of that in the United States.
3) Blockchain companies/project financing are mainly located in the Bohai Bay Rim area, Yangtze River Delta, Guangdong, Hong Kong, Macao and Sichuan-Chongqing regions; Beijing has the largest amount of financing, accounting for 45%, and Hong Kong has the highest average single financing amount, reaching 262 million yuan.
4) The investment of blockchain companies/projects have gradually shifted from start-up financing (before A-round) to mid-to-late stage financing, but still mainly concentrated before A-round.
5) Digital asset-related fields are still the most popular among blockchain investors, accounting for 29%;
6) Of the 25 active investment institutions, 68% are blockchain-focused which showed special attention in five major industries including exchanges/trading platforms, industry websites & media, entertainment and social networking, blockchain communities, and digital currency wallets. (Source: 01Caijing)
Postal Savings Bank of China Cooperates with Ant Financial on Fintech Innovation
On November 27th, Postal Savings Bank of China (PSBC) signed a strategic cooperation agreement with fintech giant Ant Financial. Both parties will focus on areas such as digital payments, online lending, rural finance, and corporate financing. Besides, the two will jointly set up a Fintech lab, exploring fintech innovation and extending cooperation in fields of cybersecurity and branch digitalization. (Source: 36Kr)
The above is a weekly synopsis of the biggest stories on Fintech in China provided by WeiyangX, part of Tsinghua University, in partnership with Crowdfund Insider.
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.