With 300m yuan stake in Peng­ing, Vanke goes bullish on fin­tech sec­tor

China Daily (Canada) - - LIFE - ByWUYIYAO in Shanghai wuyiyao@chi­nadaily.com.cn

Shen­zhen-based fi­nan­cial tech­nol­ogy plat­form Peng­ing said China Vanke Co Ltd, the gi­ant res­i­den­tial prop­erty de­vel­oper cur­rently em­broiled in a bat­tle for its con­trol, has signed an agree­ment to in­vest around 300 mil­lion yuan ($45 mil­lion), be­com­ing the big­gest share­holder in the fin­tech plat­form.

The an­nounce­ment, made onTues­day, did not clar­i­fy­how many shares Vanke holds. Zhu Jiusheng, who was pre­vi­ously Vanke’s se­nior vice-pres­i­dent, will joinPeng­ing but his ac­tual post has yet to be an­nounced, ac­cord­ing to the fin­tech plat­form’s news re­lease.

Vanke con­ducted de­tailed, half-year due dili­gence on the in­vest­ment and gained a thor­ough un­der­stand­ing of Peng­ing’s busi­ness model, risk con­trol model, staff and other as­pects be­fore it made the de­ci­sion, said the an­nounce­ment.

Vanke has been pay­ing close at­ten­tion to the de­vel­op­ment of the fin­tech sec­tor and has a pos­i­tive out­look on the sec­tor. As reg­u­la­tors have been in­tro­duc­ing de­tailed rules and stan­dards for the sec­tor, the fin­tech mar­ket will ben­e­fit greatly from im­proved de­vel­op­ment and a more com­pet­i­tive en­vi­ron­ment, to Vanke.

Peng­ing was es­tab­lished in June 2014 as a joint ef­fort of 22 com­pa­nies listed in China’s stock mar­ket and overseas bourses. The plat­form’s ma­jor ac­cord­ing busi­ness fo­cuses on peer-topeer lend­ing for sup­ply chain fi­nances.

The plat­form aims to help the “growth of mi­cro and small enterprises”, which has brought 303,100 in­vestors com­bined yields of 272.1 mil­lion yuan through deals of some 9.14 bil­lion yuan so far, ac­cord­ing to the plat­form.

Vanke is one of the sev­eral prop­erty de­vel­op­ers that has tapped the fin­tech mar­ket in re­cent years, fol­low­ing Dalian Wanda Group, China Ever­grand Group, Green­land Group, Coun­try Gar­den Group and Kaisa Group.

Vanke’s in­terim re­port showed that the de­vel­oper posted a 5.35 bil­lion yuan profit, or 10.4 per­cent year-on-year growth in the first half year of 2016 amid a re­cov­ery in the res­i­den­tial prop­erty mar­ket, and achieved a sales rev­enue of 190 bil­lion yuan, an in­crease of 69.6 per­cent in­crease.

How­ever, the im­pact of the bat­tle for con­trol of the prop­erty de­vel­oper with Bao­neng Group, its largest share­holder, has cast a shadow over its oper­a­tions.

Stan­dard & Poor’s con­firmed its rat­ing for Vanke at BBB+, with its out­look down­graded from sta­ble to neg­a­tive amid un­cer­tainty over the de­vel­oper’s oper­a­tions. year-on-year

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