HuaXia Finance, an online peer-to-peer lender in China, recently began holding customer funds at Ping An Bank, a Chinese bank, under a “formal online banking depository management system” in order to comply with tightened requirements of the China Banking Regulatory Commission. Michael J Beda, the Director of Expat Investment at HuaXia, tells MicroCapital that his is “the first company to comply with the new regulations for escrow/custodial holding of funds with Ping An Bank.” The two institutions signed the deal, which makes Ping An the exclusive depository manager for HuaXia, in April.
According to a press release from HuaXia, “This collaboration with PingAn Bank is an important step, not only for external regulatory interests, but also in the interests of addressing HuaXia Finance’s own cornerstone values (Trust, Transparency, Integrity and Risk Management).”
HuaXia, which was launched in June 2015, has intermediated loans totaling the equivalent of USD 1.3 billion and employs 7,000 people as of September 2017. As of 2016, Ping An reports total assets of RMB 2.9 trillion (USD 440 billion), deposits of RMB 1.9 trillion (USD 290 billion) and a loan portfolio of 1.5 trillion (USD 230 billion). Ping An Bank is a subsidiary of Shenzen-based Ping An Insurance.
By Matthew O’Neill, Research Associate, with support from the rest of the MicroCapital team.
Sources and Additional Resources
Information provided directly by HuaXia Finance
HuaXia Finance: Fund Depository management system with Ping An Bank Went Online
HuaXia Finance: HuaXia Finance Partners with Ping An Bank
Ping An, 2016 financials
MicroCapital: PAG, Primavera Lead $117m Equity Raise for Dashu Finance of China
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