Investment Advisors, JL Warren Capital

Junheng Li

Investment Advisors

JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Thematic (Sector/Industry)

Rounds of Tightening Squeezing Online Cash Loan PlatformsOn November 22 after the market close, the International Financial News by People's Daily, reported that new rounds of tightening are coming to the online microlenders in China.   According to the paper, new regulations have four major components:<ul><li>No new P2P licenses will be granted, sending a message to the industry that the regulators are investigating the irregularity and ramifications of online lending practices.</li></ul><ul><li>Banks and bank holding companies are not allowed to hold cash loan assets underwritten by online platforms, as those assets are deemed as too risky.</li></ul><ul><li>The industry is to consolidate after irregular players are eradicated. Post reform, the industry will be dominated by financial institutions that are regulated by the CBRC and the mega internet players such as JD, Baidu and Tencent etc. </li></ul><ul><li>Cash loan securitization is strictly forbidden, as securitization amplifies risks and disincentives investors to perform due diligence on assets that they buy.  </li></ul>

Rounds of Tightening Squeezing Online Cash Loan PlatformsOn November 22 after the market close, the International Financial News by People's Daily, reported that new rounds of tightening are coming to the online microlenders in China.   According to the paper, new regulations have four major components:No new P2P licenses will be granted, sending a message to the industry that the regulators are investigating the irregularity and ramifications of online lending practices.Banks and bank holding companies are not allowed to hold cash loan assets underwritten by online platforms, as those assets are deemed as too risky.The industry is to consolidate after irregular players are eradicated. Post reform, the industry will be dominated by financial institutions that are regulated by the CBRC and the mega internet players such as JD, Baidu and Tencent etc. Cash loan securitization is strictly forbidden, as securitization amplifies risks and disincentives investors to perform due diligence on assets that they buy.     

China's Debt Focus and Implication on Online Consumer Loan Industry

Public Relations and Social Media Manager, Dechert LLP

Peggy Heffner

Public Relations and Social Media Manager

Dechert is a global specialist law firm

Dechert LLP

Dechert is a global specialist law firm.
Focused on sectors with the greatest complexities, legal intricacies and highest regulatory demands, we excel in delivering practical commercial judgment and deep legal expertise for high-stakes matters.

Our work is widely recognized. We have 20 standout practices noted by Chambers Global, including global-wide rankings for arbitration, corporate investigations, anti-corruption, investment funds and life sciences. Named Antitrust Team of the Year, Chambers USA commends our “accomplished group” as “routinely sought after to handle some of the most significant litigation and transactions in the antitrust world.” 

In an increasingly challenging environment, clients look to us to serve them in ways that are faster, sharper and leaner without compromising excellence. We developed a first-of-its kind legal project management department, which uses technology, people and processes to drive efficiency and deliver value for our clients.

We are innovators. Dechert ranked #7 in the Financial Times’ Top North American Innovative Law Firms. Financial Times also recognizes us among the Top European Innovative Law Firms and highly commends World Compass, our marketing compliance service, which offers investment firms advice in more than 100 jurisdictions.

<div class="content-highlight">The private credit industry is on track to reach around $1 trillion in assets under management (AUM) by 2020, according to ACC and Preqin data. The historic compound annual growth rate of 20% of the industry has seen the sector increase in size 14-fold since 2000, reaching over $600 billion by the end of 2016.</div><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/035/038/original/Screen%20Shot%202017-10-05%20at%208.47.05%20AM.png?1507168161" class="editor-image img-responsive" data-smartkarma-image-id="35038"></figure>The 2017 research comes as the private credit industry reaches an important inflection point.Whilst previous editions of Financing the Economy focused on how the industry, already prominent in the US, established itself around the world as a credible alternative to traditional sources of finance, the past 12 months have seen it cement its place in the lending landscape globally.

The private credit industry is on track to reach around $1 trillion in assets under management (AUM) by 2020, according to ACC and Preqin data. The historic compound annual growth rate of 20% of the industry has seen the sector increase in size 14-fold since 2000, reaching over $600 billion by the end of 2016.The 2017 research comes as the private credit industry reaches an important inflection point.Whilst previous editions of Financing the Economy focused on how the industry, already prominent in the US, established itself around the world as a credible alternative to traditional sources of finance, the past 12 months have seen it cement its place in the lending landscape globally.

Financing the Economy 2017: The Role of Private Credit Managers in Supporting Economic Growth

China

Ant Group Co., Ltd. develops online payment platforms. The Company produces credit system and financial services platforms which provide consumers and small businesses with safe and convenient inclusive financial services globally. Ant Group provides its services worldwide.

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Ant Group (6688 HK)

China's Debt Focus and Implication on Online Consumer Loan Industry

Rounds of Tightening Squeezing Online Cash Loan PlatformsOn November 22 after the market close, the International Financial News by People's Daily,...

JL Warren Capital

Financing the Economy 2017: The Role of Private Credit Managers in Supporting Economic Growth

The private credit industry is on track to reach around $1 trillion in assets under management (AUM) by 2020, according to ACC and Preqin data. The...

Dechert LLP

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