SHANGHAI, March 12, 2018 /PRNewswire/ -- China-based Jiayin Fintech, parent company to Niwodai, one of chinese largest P2P lending companies, applied delisting from National Equities Exchange and Quotations (NEEQ) in China on 7 March.
Jiayin Fintech's main business is offering micro-finance services solution, among which, the part accounting for the largest income is tying qualified individual borrowing needs with the investing demands through Niwodai platform. So this delisting may indicate some trends of P2P industry, according to media in China.
Founded in 2011 in Shanghai, Niwodai is one of the pioneering P2P lending platforms in China to provide online credit microlending services. Depending on the massive data resources and risk-management models, the platform targets for promoting the efficiency of financial services. Up til now, Niwodai has had almost 40 million registered users totaling more than 80 billion RMB trading volume, with the net profit of 400 million RMB in 2017, making it the most progressive one in the country.
According to Jiayin Fintech's delisting bulletin, the reason of delisting is "for the sake of long term development in capital market." In its another official explanation, also indicated "in order to match up with the needs of capital development."
As is well known, the industry had undertaken a fast and furious growth in China in the past several years. However, its attempt to seek access to the capital market has been consecutively uneasy due to regulator's prudence on account of the wildness and unpredictable risks in this new born industry.
Take Niwodai for instance, listed in NEEQ in 2015, it has almost no trading volume because of high investment threshold, lack of liquidity and the barrier to transfer to mainboard. In such a dilemma, more and more P2P companies decided to switch path to meet their financing demands.
In the early and the end of 2017, there are respectively one P2P lending platform delisting from NEEQ, seeking other financing path. Jiayin Fintech is the last company with P2P lending as main business that delists, which implies the temporary end of the financing trial for P2P company in China domestically.
Besides, from the industry perspective, regulatory policy has been increasingly stringent, compliance costs much more while inter-platform competition has been fierce. For P2P lending companies, only breaking through the siege to get the recognition of capital market, can he be the survivor or winner. Niwodai's strategic adjustment may just kick off the new tide of listing abroad.