Guangzhou supports small loans into the regulatory sandbox, allowing the establishment of wholly foreign-owned small loan companies

Guangzhou supports small loans “into” the regulatory sandbox, allowing the establishment of wholly foreign-owned small loan companies
Recently, the Guangzhou Financial Supervision Bureau issued a total of 37 “Three-Year Action Plan of Guangzhou City to Create a National Benchmark City for Small Loan Industry (2020-2022)” (hereinafter referred to as “37 Guangzhou Small Loans”).The reporter saw that, in addition to supporting small loan companies in the jurisdiction to supplement operating funds and expand financing channels through asset securitization and other debt instruments in accordance with law and regulations, the Guangzhou Financial Supervision Bureau made a clear statement through the “Guangzhou Small Loan Article 37” that will promote small loansInnovate the loan business and support the “regulatory sandbox” experiment; at the same time, the Guangzhou regulator supports the enrichment of the existing forms of small loan companies, encourages dating international shareholders and capital, and sets up foreign-owned small loan companies in Guangzhou (as shown in Figure 1))). Figure 1 At the same time, “Guangzhou Small Loan 37” encourages Sui Ji small loan companies, technology companies and intermediary service agencies to cooperate in the development of innovative products based on financial technology and optimize business processes.  Regarding the enrichment of the forms of small loan companies, according to the “Article 37 of Guangzhou Small Loans”, the Guangzhou Financial Supervision Department encourages the sponsors to innovate and implement the business model of small loan companies with the replacement of the idea of supporting agriculture and supporting small businesses and decentralized small amounts.Differentiated development.Gradually form a pattern of Internet small loans, traditional small loans, public welfare small loans, specialized small loans, policy small loans, and re-loan companies that complement each other and develop in an orderly manner.  In Articles 20, 21 and 22, the Guangzhou Financial Supervision Bureau also specifically mentioned “dating international shareholders and capital” and “establishing foreign-funded small loan companies” and other related issues.  Specifically, the 37 Guangzhou Small Loan allows Suiji Small Loan Company to “make full use of the opportunity of building an international financial hub in the Guangdong-Hong Kong-Macao Greater Bay Area, actively dating Hong Kong, Macao and international shareholders, encouraging dating international to create investment capital and enhance internationalization.Management level.In order to promote the development of cross-border finance in the Guangdong-Hong Kong-Macao Greater Bay Area, Guangzhou Small Loan 37 also encourages small lenders to “make good use of the Greater Bay Area and Free Trade Zone policies, explore cross-border financing and cross-border asset transactionsInnovate business and continuously reduce financing costs of small loan companies.As for the establishment of foreign small loan companies, according to the disclosure of Article 37 of Guangzhou Small Loan, Guangzhou will focus on dating Hong Kong and Macao funds, and establish foreign-owned small businesses in key areas such as Private Financial Street, Nansha Free Trade Zone, and Guangzhou International Financial City.Loan companies, and explore the establishment of small loan companies in the Guangdong-Hong Kong-Macao Greater Bay Area to conduct business to serve the construction of the Greater Bay Area.  Regarding the background basis for the introduction of the 37 Guangzhou Small Loans, the Guangzhou Financial Supervision Bureau said that small loan companies are an important force in the implementation of inclusive finance. Since the pilot work of the Guangzhou small loan industry has been carried out for 10 years, the local small loan industryCumulative loans exceeded 226 billion, serving nearly 20 million people.At present, the total number of Internet small loan companies registered in the Guangzhou area ranks first among the first-tier cities in the north, Shanghai, Guangzhou and Shenzhen.  According to the introduction of the Guangzhou Financial Supervision Bureau, the Guangzhou Municipal Party Committee and the municipal government attach great importance to the standardized development of the small loan industry, pioneered the establishment of a private financial street in the country, supported the development of small loan companies, promoted innovative policies, and tried first to continue to create an international and legalBusiness environment.At present, Guangzhou Private Financial Street has become the most concentrated area for small loan companies in the country, and has attracted nearly 10 Fortune 500 companies. More than 20 Chinese Fortune 500 companies have established small loan companies since then.  Regarding the “strength” of small loan companies in Guangzhou, the reporter noticed that in the first list of 73 mobile finance APPs of 33 institutions announced by the China Internet Finance Association on May 19, there were 3 online small loan appsThe organization’s three APPs are “finalists.”Among them, small loan companies in Guangzhou accounted for two seats, namely Guangzhou Shurong Internet Microfinance Co., Ltd. (“Rongshu Loan”) and Guangzhou Lakala Network Microloan Co., Ltd. (ie “Lakala Finance”).  According to institutional data disclosed by the official website of the Guangzhou Financial Bureau, as of December 2019, Guangzhou City has registered Guangzhou Constant Amount Loan Co., Ltd., Guangzhou Wanda Pratt & Whitney Network Microfinance Co., Ltd., and Guangzhou TCL Internet Microfinance Co., Ltd., etc.There are 115 small-loan companies, including 112 municipal-managed small-loan companies and 3 provincial-managed small-loan companies.According to incomplete statistics by reporters, there are currently 20 online small loan companies with the word “Internet” or “Internet” in their names in the list of 115.  Sauna, Ye Wang Huang Xinyu editor Sun Yong proofreading Lu Qian