China Fintech Newsletter – Oct.23-29

Shouqian Ma (“money collection code”), the QR code payment service for small physical stores or individuals of Ant Financial, have signed up 33 million customers in the eight months since its launch in February.

While previously businesses too small to justify barcode/QR code scanning devices had to use their personal Alipay accounts that charge fees for withdrawals above a certain amount, Shouqian Ma doesn’t charge a fee until March 2021.

Ant Financial announced last week plans to extend 1 trillion yuan of loans to Shouqian Ma customers over the next three years. The service extends business loans through MyBank, the online direct bank affiliated to Ant Financial, and Net 30 credit for orders on, the online wholesale marketplace of Alibaba. The more payments they collect through Alipay the better terms they can get, according to Ant Financial. (Source in CN)

Other services available for Shouqian Ma customers include Ant Check Later, a line of credit for Alipay payment users, and Yulibao (or Yunshangbao), a money market fund. More recently it added a sales data analytics service.

Tianhong Yu’ebao Money Market Fund saw third-quarter growth in assets under management declined to 9%, compared with 40% and 25% in the previous two quarters, respectively, and 96% in the same quarter last year. (Document in CN)

The slowed growth in the last two quarters is believed to be mainly due to the lowering of the investment cap. The fund lowered the cap from one million yuan to 250,000 yuan in May and further to 100,000 yuan in August, reportedly due to regulatory pressures. Another cause may be the addition of a new channel for third-party investment products on Yu’ebao homepage in June.

The fund’s assets reached 1.56 trillion yuan as of the end of the quarter, with bank deposits, bonds and reverse repos accounting for 87.1%, 7.9%, and 4.9%, respectively. The total income generated in the quarter was 15.3 billion yuan.

Yulibao, or Yunshangbao, another money fund managed by Tianhong that’s only available for business customers of Ant Financial, increased over 100% quarter-over-quarter in assets to 104.5 billion yuan at the end of the third quarter, with 780 million yuan in total income. (Document in CN)

The total transaction volume of consumer loans through online marketplace lending platforms in September was estimated to be 36 billion yuan, accounting for 15% of the total online consumer lending volume, according to estimations by 01Caijing, a local finance news outlet.

Top 20 sites have a combined 50% market share. The top five platforms measured by consumer loan volume are PPDAI, Yirendai, PPmoney, Hengyirong and Jimu. (Source)

An earlier report by WDZJ, a media outlet focused on online lending, estimated the total volume of online consumer lending in September was 30 billion yuan, accounting for 13% of the total online lending volume. WDZJ estimated the total number of online lending sites that offered consumer credit was 258, accounting for 13% of the total. The top five in terms of transaction volume, according to WDZJ data, are PPDAI, 51RP, Xiaoying, PPmoney and Niwodai. (Source)

The total number of online auto financing platforms decreased to 541 in September, down from 769 a year ago, according to 01Caijing. (Source)

There were a total of 76 online lenders focused on agriculture lending in September, accounting for 5% of the total online lenders (1554). (Source)

Didi, the leading ride-hailing service, and Ant Financial acquired 3.14% and 16.15%, respectively, of payment technology company Gaoyang Jiexun (19Pay) at a valuation of 820.3 million yuan.


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