China Internet Crowdfunding and Wealth Management Industry Report, 2015
Main business models of Internet finance include: (1) third-party payment; (2) network lending (P2P and network microcredit); (3) crowdfunding; (4) Internet wealth management; (5) Internet consumer finance; (6) virtual currency; (7) Internet financial portal; (8) guarantee; (9) credit investigation system. The report focuses on Internet crowdfunding and Internet wealth management industries.
Crowdfunding refers to the model that project sponsors release their creative ideas on Internet platforms to raise funds and, in return, give investors material objects, services or equities. It includes mainly rewards-based crowdfunding, equity-based crowdfunding, and donation-based crowdfunding. The first crowdfunding platform appeared in China in Jul 2011, and after two years (2012-2013) of exploration and cultivation, various crowdfunding platforms have mushroomed from 2014, adding 142 in 2014. By the end of Jun 2015, the number of crowdfunding platforms in China further rose to 235, mainly distributed in cities and provinces with developed economy and Internet, such as Beijing, Guangdong, Shanghai, Zhejiang, etc. In the first half of 2015, RMB5.585 billion was raised on crowdfunding platforms in China, an upsurge of 98.0% as compared with RMB2.82 billion for the full year 2014.
Among various kinds of crowdfunding, equity-based crowdfunding is favored by capitals. During 2014-2015, Internet companies, brokerages, equity transaction centers, and equity investment funds have sped up their layout in equity-based crowdfunding field. In the first half of 2015, the number of successful financing projects on equity-based crowdfunding platforms in China reached 658, raising RMB3.746 billion (67.1% of total amount of fund raised in crowdfunding industry), an increase of 59.4% compared with RMB2.35 billion throughout 2014. In the first half of 2015, top five equity-based crowdfunding platforms by amount of financing were angelcrunch.com, dj.jd.com, renrenchou.com, vc.cn, and evervc.com.
Internet Wealth Management Industry
Internet wealth management refers to the service pattern in which relevant companies carry out cooperation with financial institutions to put provide wealth management products (including funds, insurance, trust, bills) online through internet technology and platform, thus realizing Internet-based wealth management.
Since Alibaba launched Internet wealth management products in Jun 2013, Internet companies, fund management companies, banks, and independent fund sales institutions have launched their own Internet wealth management products, basically all money funds. By asset size, Yu’ebao managed by Ant Financial under Alibaba is far bigger than other competing products. By the end of Jun 2015, Yu’ebao users hit 149 million, and asset size amounted to RMB613.381 billion, seizing 25.4% of the money fund market share and 41.9% of the Internet wealth management product market share.
With introduction of easy monetary policies by China’s central bank in the second half of 2014, the yields of Internet wealth management products have fallen sharply, and a single money fund cannot fulfill peoples’ demand for wealth management. Accordingly, Internet wealth management platforms introduced other wealth management products, such as bond funds, blend funds, equity funds, bills, insurance, loans, stocks, etc.
At present, main Internet wealth management platforms in China include Ant Financial’s Zhao Cai Bao, JD Finance’s financial channel, Tencent’ Li Cai Hui, and Baidu Finance. Zhao Cai Bao gets the lion’s share in Internet wealth management market based on 300 million real-name Yu’ebao users. By the end of Jul 2015, the number of investors on Zhao Cai Bao exceeded 7 million, and cumulative transactions reached RMB224.497 billion, up 29.0% on a month-on-month basis. Transactions in Jul 2015 arrived at RMB50.53 billion, rising 26.9% month on month.
With rising income, growing awareness of wealth management and introduction of multiple wealth management products meetings needs of different groups of people, the number of Internet wealth management users and market size will expand rapidly.
China Internet Crowdfunding and Wealth Management Industry Report, 2015 highlights the followings: Overview of Internet finance in China (definition, business models, development history, case of financing, trends); Development environments for industry (relevant policies, deposit and financing, Internet user, big data, cloud computing); China’s Internet crowdfunding industry (business models, development history, market size, rewards-based crowdfunding market, real estate crowdfunding market, equity-based crowdfunding market, trends); 13 major Chinese Internet crowdfunding platforms (profile, profit models, project financing, risk control, etc.); Chinese Internet wealth management market (definition, classification, relevant policies, fund sales institutions, fund sales payment institutions, operation of fund industry, market size of wealth management products, competitive landscape, wealth management platforms, mobile wealth management APP, etc.); 10 major Chinese Internet wealth management platforms (profile, layout in Internet finance, businesses, operation, etc.)
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