In Inno nova vativ tive e Fi Fina nance nce for or SM SMEs - PowerPoint PPT Presentation

In Inno nova vativ tive e Fi Fina nance nce for or SM SMEs Es in C n Chi hina na Xiaochen Zhang Founding Partner, New Development Ventures; Board of Director, American Crowdfunding Professional Association September 21-22, 2016; Kuala Lumpur, Malaysia

Challenges for SMEs to Scale 1. • Limited access to traditional • Vision, leadership, Capacity 2. financial instruments and Gap business models, high costs capital, Capital operational issues, insufficient capital at Gap different stages marketing, clients Challenges • • Limited access to new Limited understanding of market, no expertise in technology trend, limited 4. 3. aquire clients from a budget for R&D Globalization foreign market, Technology Gap disconnected from global Gap value chain

NDV: Fill the Gaps for a Better SMEs Ecosystem Market Access Fund Impact Investing Market Access Advisory Global Tech Impact HR Services Innovation Center Financial Advisory Global Start-up University Insurance Blockchain Lab Vertical Crowdfunding Lab Leadership New Energy Sharing Economy Innovative Finance Lab New Technologies VR/AR Infrastructure Lab Master Class

Why doe oes s Fi FinT ech ech mat atter er for or SM SMEs? s? FinTech enables SMEs with Payment services Funders receive a debt new solutions operated instrument that pays a fixed Mobile under financial New chanels • P2P lending rate of interest and returns regulation and Payment New instruments • principal on a specified performed from or via schedule New resoruces • a mobile device New users • In china: Funders receive Credit history is Internet use : 649 million equity instruments generated New Credit internet users, including or profit sharing Crowdfunding through big Reference 557 mobile internet users arrangements data (by end of 2014). technology of Internet finance . e.g. Yu’E Bao online data Fund (Alibaba). 225 million users end August 2015 (up from 78.5 million end Peer-to-peer insurance is a Match P2P New Wealth 2014). reciprocity insurance opportunities with Management contract based on + the social web : Wechat 440 Insurance investors through a sharing online platforms million. monthly active economy concept users Jan 2015.

Ca Case se St Study:A dy:Ant nt Fi Financi nancial al Gr Grou oup p for or SM SMEs s Credit Reference Micro finance Mobile Big data Payment Crowdfunding Wealth Management P2P Lending Consumer lending Wealth Internet Bank Management

Ch Challenge allenges s an and d Reg egul ulations ations P2P lending platforms Problematic Platforms Monthly transaction Top 100 transaction 4667 2644 (56.7%) US$28billion (Rmb: 178billion 68% Outstanding loan: >USD$100billion P2P regulations (August ,2016) Negative list: NOT take public deposits, create asset pools, provide any forms of guarantee for lenders, sell wealth • management products, issue asset-backed securities and Must use third- party banks as custodians for investors’ funds. • An individual can borrow as much as 1 million yuan ($150,000) from P2P sites, including a maximum of 200,000 yuan from any • one site An legal entity can borrow as much as 5 million yuan ($750,000) from P2P sites, including a maximum of 1 million yuan from • any one site

The End or a New Begining? Thank you Email: zxc@newdevelopmentventures.com Wechat.DCBLUEDELIGHT