The China Internet Conference welcomed more financial tycoons this year as the Internet glamour wowed traditional financial practitioners with the sprawling development of P2P loan business and Alipay’s Yuebao. Triggered by the heat, a raft of banks and insurance companies launched their Internet financial products in recent few months.
Xie Ping, vice manager of China Investment Corporation, concluded the trends of Internet financial industry at the conference.
The People’s Bank of China has granted more than 250 third-party payment licenses so far, of which 97 are engaged in Internet payment and more than 150 are in pre-paid card business. Although the overall volume processed by Internet payments companies only amount to 6 trillion yuan or 0.5 percent of the whole payment industry, the number of deals conducted on the Internet represents 40 percent of the total.
P2P online lending platforms such as Renrendai.com provide more choices, easier access and transparency to clients. With focus on micro-credits, it plugged a hole in China’s banking system that has long neglected needs of small- and medium-sized enterprises’.
Alipay’s Yuebao helps sell mutual funds with Internet payments solution, breaking the limits of time of space. Yuebao claims it recorded 2.50 million users and turnover of 5.7 billion yuan within 18 days after its debut.
Monitoring and Risk Control
No regulations in place for Internet financing, an emerging industry, as compared with traditional financing. Authorities are accelerating legislation on this sector.
Bitcoin and litecoin are gradually establishing their presence in Chinese virtual currency market.