Ping An to launch financial asset exchange
Ping An Insurance is taking on the Beijing Financial Assets Exchange in a bid to attract more credit asset, trust product and wealth management product transactions to its online platform as the insurer steps up its efforts to tap internet finance.
Following the development of its peer-to-peer (P2P) online lending platform over the past two years, the mainland's second-largest life insurer is eyeing an "exchange" where domestic institutions can trade financial assets via the internet - enhancing liquidity while cutting financing costs.
Gregory Gibb, chief executive of Ping An's internet finance businesses, said the new business resulted from Beijing's positive stance on innovations in the finance sector but stressed risk control would be given a priority.
"China abounds with quality financial assets and our job is to make all the information transparent to the players," Gibb told a press conference yesterday. "They are professional and will be able to make their own judgments."
The Beijing Financial Assets Exchange, established in 2010, was designated by regulators to handle transactions of credit assets, trust products and wealth management products among mainland institutions.
There are about 20 exchanges around the mainland that deal with trading of financial assets among institutions and the Beijing bourse is a frontrunner in the business.
Ping An said it had been in close contact with the regulators on its online business developments.
Internet finance has become a heated topic on the mainland with the rising popularity of online financial services such as money transfers for online payments, and P2P platforms acting as matchmakers for lenders and borrowers.
In an apparent effort to ward off potential risks from the internet finance sector, the central bank recently issued two draft rules on limiting online shopping and money transfers.
