Ping An-backed Lufax raises $1.3 billion at lower valuation: sources – Reuters

What happened: Lufax, one of China’s largest peer-to-peer lenders and online wealth managers, has reportedly raised $1.33 billion from a consortium led by Chinese private equity firm Primavera Capital. Other participants in the round include the Qatar Investment Authority, Hong Kong-based All-Stars Investment, and Japanese financial firm SBI Holdings. The funding values the company at $38 billion, lower than the anticipated $40 billion the company aimed for in June.

Why it’s important: Following the IPO rush of Chinese fintech companies in late 2017, Lufax planned to go public in Hong Kong to raise up to $5 billion in the first half of 2018. The IPO was postponed as authorities sought to change regulations and launched a national rectification campaign targetting online consumer lending, a core business of the company. Following a sudden surge of P2P defaults in mid-2018, 163 platforms were categorized as “troubled.” These companies had difficulty paying investors, were under investigation by the national economic crime investigation department, or had their owners run away with investors’ money.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.