Lufax said to seek $1b in new funds

Chinese peer-to-peer lender and broker Lufax is seeking to raise about $1 billion in a round of funding that would value the company at between $15 billion and $20 billion, according to a person familiar with the matter.

The Shanghai-based company has begun approaching possible investors and wants to finish by early next year, said the person, who asked not to be named because the matter is private. Ping An Insurance (Group) Co, the company's biggest shareholder, is not planning to participate in this round, the person said. There is no guarantee Lufax will be able to raise all the money, and any deal may not be completed. Lufax was valued at $10 billion in March, when it raised $500 million in a private placement.

China's finance sector is going through sweeping changes after years of government control, with new entrants such as Lufax and Baidu Inc introducing innovation and lower-priced services. Lufax, which started four years ago and is officially Shanghai Lujiazui International Financial Asset Exchange Co, has emerged as the leader in the country's booming peer-lending market in which borrowers get matched with investors.