Lufax to Open First Overseas Platform in Singapore

Eight months after it announced its expansion plans, Lufax, the Chinese P2P lending giant, is slated to open in Singapore.

Reuters:

Chinese online wealth management giant Lufax will launch its first overseas platform in Singapore, the company said on Monday, as a more welcoming regulatory environment gave the city state an edge over neighboring Hong Kong.

As Crowdfund Insider notes, Lufax announced late last year that it would be opening in Singapore and Hong Kong. However, Reuters says that company chairman and CEO Gregory Gibb found Singapore easier to communicate with, as the Monetary Authority of Singapore acts as the single regulator for fintech.

“When you go to other jurisdictions, you will have multiple regulators,” Gibb said.

Australia and the Middle East were reportedly also in contention for Lufax’s first overseas platform.

In any case, the P2P lender will initially launch 3 to 4 products – compared to the over 3,000 they offer on the mainland – including simple ETFs. It currently targets middle-class retail customers and expects an average investment between $50,000 and $100,000. It also plans to develop robo-advisory services for the platform, too.

Ironically, Singapore residents won’t be able to invest on the platform on its current license, but Southeast Asians and overseas Chinese should be able to. Here’s how Gibb sees things play out:

“I would imagine the reach, on the customer side, initially will certainly be Asia. It will start with overseas Chinese and it will extend into the bigger Asian markets,” Gibb said.

Photo: Bernard Spragg. NZ