Developer goes bullish on fintech sector

Financial technology platform Penging says China Vanke Co Ltd, the residential property developer embroiled in a battle for its control, has agreed to becoming its biggest shareholder with an investment of about 300 million yuan ($45 million; 39 million euros).

The announcement, made on Aug 23, did not include how many shares Vanke holds.

Zhu Jiusheng, previously a senior vice-president at Vanke, will join Penging, although his post is yet to be announced, the fintech platform based in Shenzhen says.

It says Vanke conducted six months of detailed due diligence and gained a thorough understanding of Penging's business model, risk control model and workforce before signing the deal.

The property developer has been paying close attention to the development of the fintech sector. As regulators have introduce detailed rules and standards, the fintech market will benefit greatly from improved development and a more competitive environment, according to Vanke.

Penging was established in June 2014 as a joint venture between 22 companies listed on Chinese stock markets and overseas boards. The platform's major business focuses on peer-to-peer lending for supply chain finances.

The platform says it aims to help the "growth of micro and small enterprises", which has brought 303,100 investors combined yields of 272.1 million yuan, according to the platform.

Vanke is one of several property developers that have tapped the fintech market, after 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 sales revenue of 190 billion yuan, up 69.6 percent year-on-year.

However, the impact of the battle for control 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 due to uncertainty over the developer's operations.

wuyiyao@chinadaily.com.cn

(China Daily Africa Weekly 08/26/2016 page25)