Internet Finance Industry in China - Opportunities and Selected Issues 출처: Gao Zhifang FANGDA PARTNERS

1. Internet Finance Industry in China
- Opportunities and Selected Issues
2015 FINTECH SEMINAR
Gao Zhifang
email: gloria.gao@fangdalaw.com
August 21, 2015

2. Major products and service in China
Peer-to-peer (also known as P2P) Lending
Online/Mobile Payment, Settlement, Remittance
E-commerce Financial Platform
E-commerce Micro Credit
Crowd Funding
Fund Management
Virtual Currency

3. Examples of foreign investment in Internet finance industry
Company Product/
service
Brand name Description
China Edai
Financial service
Group
P2P lending Edai Established in January 2009 and provides individuals and enterprises
with corporate loans, bank loans, car loans, emergency loans, credit
loans, micro loans, mortgages, unsecured loans and other services.
Beijing Rong
Century
Information
Limited
Online
financial
search
Rong 360 Established in October 2011 and an internet platform providing
search and recommendation services financing and loans for a
number of individuals and micro enterprises.
Tencent Online fund
management
Wechat A messaging APP similar to Line. Its wealth management products
were launched in January 2014.
Beijing Gaoyang
Xunjie
Information
Technology
Limited
Payments,
settlement and
remittances
19 Pay Provides individuals with online payment services, account
management services and various value-added services.
Beijing
Wecash Qi Yi
Technology
Co., Ltd.
P2P lending Wecash Established in April 2014 and offers P2P lending by quick assessing
the credit of borrowers.
Noah Wealth
Management
Co., Limited
Online wealth
management
Established in 2003 and listed on NYSE in November 2011 and
primarily engages in distributing financial products and services
online.
Credit Ease Co.,
Ltd
P2P lending Yi Xin
Bao
Established in 2006 and launched the first P2P microcredit platform
in China, bridging urban lenders with extra funds and people with
microcredit needs, such as urban micro-entrepreneurs, salary workers,
vocation school students and the rural poor.

4. P2P industry growing rapidly in China
0 3.1
21.2
105.8
252.8
2010 2011 2012 2013 2014
Development of P2P from 2010 to 2014
Volume of Transaction (billion PRC yuan)
35.78 33.51
49.26
55.15
60.96
65.96
82.51
Development of P2P Industry from
January to July in 2015
Volume of Transaction (billion PRC yuan)

5. Regulations on P2P Industry
• Intermediary of information
• No fraud, Ponzi scheme and
other criminal behavior
• Detailed instructions on P2P
business model

6. Development of P2P Business Model
P2P CompanyBorrower Lender
Information Information
Fund Fund
Guarantee Guarantee

7. Development of P2P Business Model
Information Information
Guarantee Guarantee
Third Party Payment Company
P2P Company LenderBorrower

8. Development of P2P Business Model
Information Information
Insurance Company
Guarantee Company
Third Party Payment Company
P2P Company LenderBorrower

9. Q ＆ A
Beijing
Tel: (8610) 5769 5660
Fax: (8610) 5769 5788
email@fangdalaw.com
Shanghai
Tel: (8621) 2208 1166
Fax: (8621) 5298 5599
email@fangdalaw.com
Shenzhen
Tel: (86755) 8256 0188
Fax: (86755) 8256 0189
email@fangdalaw.com
Hong Kong
Tel: (852) 3976 8888
Fax: (852) 2110 4285
email@fangdalaw.com