By Karry Lai, Asia
Online lending companies are facing a number of
issues when planning an initial public offering in Greater
China and the US, according to panelists at last
week’s IFLR Fintech Asia conference in Hong Kong.
Regulators’ attitudes towards business models,
accounting requirements and risk reserves are issues companies
need to be mindful of.
Online lending companies in China are increasingly
looking to do listings in the PRC but regulators fear that the
sector may pose risks for consumers. The Asian giant has seen a
wave of regulations targeting peer-to-peer (P2P) lending in the
past two years.
"P2P lending has a relatively short history in China," JunHe
partner Sun Xiaojia told delegates. "Back in 2015, regulators
expressed the lack of regulation in China, but in the past two
years, regulatory development has been happening fast and the
compliance requirements and costs for platforms...