Rumor: Vipshop, Ctrip, Soufun Plan Small Loan Subsidiaries
21st Century Business Herald, 5/19/14
According to an industry insider, Chinese B2C brand-name discount site Vipshop (NYSE: VIPS) is in negotiations with the financial services office of Shanghai's Jiading district to establish a small loan subsidiary in the district with registered capital of RMB 200 mln. Online travel service provider Ctrip (Nasdaq: CTRP) and online real estate site SouFun (NYSE: SFUN) also plan to establish small loan subsidiaries in Shanghai, according to the source.
A Jiading district financial services office employee has confirmed that negotiations with Vipshop are under way.
Shanghai's relatively relaxed policies for small loan firms make the city an attractive location for China's internet companies. Under the regulations, Shanghai-based loan companies are permitted to grant loans to individuals and companies not based in Shanghai, a practice not allowed for financial services companies registered in many other cities.
B2C e-commerce platform JD.com (Jingdong) and internet company Baidu (Nasdaq: BIDU) will launch small loan businesses in June, following a six-month application process, according to a source close to the financial services office of Jiading district. The wholly-owned small loan subsidiaries of JD.com and Baidu will be permitted to provide small loans to e-commerce merchants nationwide through their respective online platforms.
Editor's Note: For more information on this topic, please see "Update: Jingdong, Baidu Confirm Small Loan Subsidiaries," MD 9/24/13 issue.
Keywords: e-commerce Internet online real estate Ctrip online travel B2C SouFun Baidu BIDU CTRP SFUN Vipshop VIPS JD.com financial services