Banks give China's web lenders a second life
19/09/2018 03:45
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
By Robyn Mak
HONG KONG, Sept 19 (Reuters Breakingviews) - Investors are
fleeing the country's $200 bln peer-to-peer lending sector, as
Beijing steps up its crackdown. The squeeze has pushed many
outfits like LexinFintech to seek more funding from banks.
Margins will suffer, but it's a small price to pay for growth.
Full view will be published shortly.
On Twitter https://twitter.com/mak_robyn
CONTEXT NEWS
- Chinese consumer finance company X Financial is planning
to raise up to $121 million in a New York initial public
offering. The company is selling 11 million American depositary
shares at $9 to $11 each. The deal will price on Sept. 24.
- The company offers financial products including credit
card transfers and unsecured loans. As of June, X Financial had
1.3 million active borrowers.
- Separately, Chinese online lender LexinFintech on Aug. 23
reported revenue in the three months to June of 1.8 billion yuan
($262 million), an increase of 35 percent from the same period
last year.
- Earnings at the company topped 465 million yuan, up from
15.5 million yuan a year earlier.
- For previous columns by the author, Reuters customers can
click on MAK/
- SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS: http://bit.ly/BVsubscribe
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Beijing struggles to defuse anger over China's P2P lending
crisis urn:newsml:reuters.com:*:nL4N1V30BS
BREAKINGVIEWS - Chinese peer lending protests set political trap
urn:newsml:reuters.com:*:nL4N1UY17A
BREAKINGVIEWS - China's peer lender pain will hurt the little
guy urn:newsml:reuters.com:*:nL4N1UL2Z8
BREAKINGVIEWS - U.S. debut restores faith in Chinese
micro-lender urn:newsml:reuters.com:*:nL4N1OM19I
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Peter Thal Larsen and Katrina Hamlin)
((robyn.mak@thomsonreuters.com; Reuters Messaging:
robyn.mak.thomsonreuters.com@reuters.net))