China’s JD launches P2P lending platform

The platform, Jiuxin Finance, is wholly-owned by JD. The GP claims to be the first private equity firm in China to make such a move.

Jiuxin Finance, which has yet to begin operations, will initially provide online lending services between LPs in JD's fund and its portfolio companies. The platform will then expand its services to cover other JD clients, including mutual fund investors, the GP said in a statement.

JD, formerly known as Jiuding Capital, wants to establish a "mega asset management" framework, encompassing private equity, hedge funds and mutual funds.

Last year it became the first Chinese PE firm to list on the country's over-the-counter (OTC) platform. Having launched its own brokerage firm and mutual fund arm - Jiutai Fund - last year JD also announced plans to set up a private commercial bank. In addition, a fund has been set up to provide individual loans for Chinese university students.

The GP had RMB31 billion in private equity funds under management at the end of last year, and has secured a more than 30% in IRR on its investments.

P2P lending sites have proliferated in China with a view to supporting small and medium-sized enterprises (SMEs) that don't qualify for bank financing. Independent players and traditional financial institutions are moving into the space.

Two months ago, CDH Investments participated in a RMB3 billion round of funding for Shanghai Lujiazui International Financial Asset Exchange (Lufax), a Chinese P2P lending platform controlled by Ping An Insurance Group. The round was led by BlackPine, a Hong Kong-based investment firm, and also featured the private equity division of China International Capital Corporation (CICC).

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• Topics
• Greater China
• Financials
• Jiuding Capital
• Financial Services
• China