Lufax Holding Ltd Provides Updates Regarding Recent Regulatory Development
November 03 2020 - 7:30AM
Business Wire
Lufax Holding Ltd (NYSE: LU) (“Lufax” or the “Company”), a
leading technology-empowered personal financial services platform
in China, today released a statement regarding the Interim Measures
on Internet Micro Lending Loans (Consultation Paper) jointly issued
by the China Banking and Insurance Regulatory Commission and the
People's Bank of China on November 2, 2020 (the "Consultation
Paper").
The Company noted that according to the Consultation Paper,
microloan companies that engage in joint lending or loan
facilitation partnership with funding partners will be subject to
restrictions with respect to risk management, qualification of
joint lending or loan facilitation partners and use of credit
enhancement services, among others.
As previously disclosed, the Company ceased funding loans
directly through its microloan subsidiaries on a large scale in
December 2017. In addition, the Company is not engaged in any joint
lending or loan facilitation partnerships with funding partners
through its microloan subsidiaries. During the nine months ended
September 30, 2020, loans funded by microloan subsidiaries
accounted for less than 1% of Lufax's total loans facilitated. All
microloans funded during the nine months ended September 30, 2020
had been funded without any joint lending or loan facilitation
funding partners.
In light of the above, the Company does not expect the
Consultation Paper to have any material impact on the Company’s
business operations. However, new rules, interpretations and/or
clarifications and other developments by legal and regulatory
authorities may be adopted or announced in the future, requiring
the Company to re-evaluate its position then.
About Lufax Holding Ltd
Lufax Holding Ltd is a leading technology-empowered personal
financial services platform in China. Lufax Holding Ltd primarily
utilizes its customer-centric product offerings and
offline-to-online channels to provide retail credit facilitation
services to small business owners and salaried workers in China as
well as tailor-made wealth management solutions to China’s rapidly
growing middle class. The Company has implemented a unique,
capital-light, hub-and-spoke business model combining purpose-built
technology applications, extensive data, and financial services
expertise to effectively facilitate the right products to the right
customers.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the
United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. Statements
that are not historical facts, including statements about Lufax’s
beliefs and expectations, are forward-looking statements. Lufax has
based these forward-looking statements largely on its current
expectations and projections about future events and financial
trends, which involve known or unknown risks, uncertainties and
other factors, all of which are difficult to predict and many of
which are beyond the Company’s control. These forward-looking
statements include, but are not limited to, statements about
Lufax's goals and strategies; Lufax's future business development,
financial condition and results of operations; expected changes in
Lufax's income, expenses or expenditures; expected growth of the
retail credit facility and wealth management markets; Lufax'
expectations regarding demand for, and market acceptance of, its
services; Lufax's expectations regarding its relationship with
borrowers, platform investors, funding sources, product providers
and other business partners; general economic and business
conditions; and government policies and regulations relating to the
industry Lufax operates in. Forward-looking statements involve
inherent risks and uncertainties. Further information regarding
these and other risks is included in Lufax’s filings with the U.S.
Securities and Exchange Commission. All information provided in
this press release is as of the date of this press release, and
Lufax does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20201103005345/en/
For investor inquiries, please contact: Lufax Holding Ltd Email:
Investor_Relations@lu.com
ICR Inc. Jack Wang Tel: +1 (646) 308-0546 Email:
lufax.ir@icrinc.com
For media inquiries, please contact: Lufax Holding Ltd Email:
YUXIYUAN925@lu.com
Edmond Lococo Tel: +86 138-1079-1408 Email:
ICRAsiaPR@icrinc.com
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