BEIJING/SHANGHAI - Lufax, one of China’s largest online wealth management platforms that is backed by financial giant Ping An Insurance , plans to exit its once-core peer-to-peer lending business, three sources with direct knowledge of the matter told Reuters.
The sources said they did not know exactly when Lufax’s P2P business would be shuttered, or how the outstanding business will be handled, but added that the company has already started the process of applying for a licence in consumer finance, a business which it intends to focus on. P2P boomed in China - becoming far bigger than the rest of the world’s combined P2P lending - until regulators took notice three years ago as claims of frauds surfaced, and as part of a wider Beijing-directed crackdown on potential bubbles in the financial system.
When asked to comment, Ping An Group and Lufax said the P2P business of Lufax is run in accordance with regulatory requirements and “the online business is operating normally and existing products and customer rights are not affected”. The CBIRC did not immediately respond to a request for comment.CONSUMER FINANCE
Lufax has already diversified into wealth management products, although such products under its management shrank by 20% to 369.41 billion yuan in 2018 as new rules curbing leveraged investments were introduced, according to Ping An’s annual report.
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