Jianlicai Introduces Fund Product "Shinianbao" to Support the Healthy Development of the FinTech Industry
HONG KONG, Aug. 6, 2018 /PRNewswire/ -- Forgame Holdings Limited ("Forgame" or the "Group") (stock code: 00484.HK) recently announced strategic adjustments made by the Group's FinTech information recommendation platform "Jianlicai" to remain in full compliance with currently industry regulations. Jianlicai rapidly launched a legally compliant and standardized financial fund portfolio product, "Shinianbao", to remain in full compliance and reiterate its commitment and responsibility to users. The new business model of Jianlicai has been a focus by Hong Kong and Chinese media. The following is the main content of the Group's response:
Media: "Beijing Internet Finance Association recently issued a Risk Warning Letter to Strengthen Business Compliance. How does the recent wave of regulation affect Jianlicai operations?"
Forgame management: "With reference to the recent risk warning documents issued by the Beijing Internet Finance Association, online lending platforms are not allowed to provide investors with 'Wealth Management Plan' related products. All online lending platforms in Beijing are requested to remove the 'Wealth Management Plan' products from their platforms. After careful deliberation, Jianlicai's management has decided to strategically adjust Jianlicai's 'Wealth Management Plan' business model. In order to remain in compliance with current regulations, we are gradually reduced the size of existing non-standard financial products. At the same time, Jianlicai quickly launched standard online financial product 'Shinianbao' to safeguard the interests and user experience of its clients. In order to ensure the smooth transition of assets, as well as cope with the industry-wide liquidity pressure, Jianlicai decided to temporarily adjust the rules for user funds transfer, and set certain limits on the amount of funds transferred by users. This will ensure the orderly transfer of funds by users. The new transfer rules will be in place for at least one month. During this period, Jianlicai will increase coordination with the asset provider to improve the liquidity of funds, and gradually adjust transferable amounts."
Media: "Are Jianlicai's existing underlying assets safe? Following the strategic adjustment, what specific adjustments will be made to the assets recommended by Jianlicai's platform?"
Forgame management: "The previous 'Wealth Management Plan' products Jianlicai recommended are safe and reliable. They were supported by Forgame's Big Data Risk Control System. These products are quite popular among users as they have generated stable returns with controllable risks and facilitate easy deposits and withdrawals. However, the time horizon of the underlying assets is unable to fully satisfy the liquidity needs and sentiment of investors. The Group has been an industry leader in terms of its strategy, which it has already deployed standardized product recommendation to rollout and upgrade and iteration of the investment products. Therefore, the Group is able to respond in a timely manner with the launch of 'Shinianbao', a fund product that offers a similar rate of return and controllable risks with better liquidity. The Group highly appreciates the increased regulation and believes that government regulation is beneficial for the healthy development of the entire industry. Forgame will continue to support increased government regulation of industry and embrace full compliance."
Media: "What is this 'Shinianbao' product?"
Forgame management: "'Shinianbao' is a fund portfolio tailor made for investors by a professional investment research team with the cooperation of Jianlicai and licensed financial institution iFAST Financial Limited. iFAST Financial Limited (Fund sales qualification number in PRC: 000000381) is the first wholly foreign-funded fund that qualified as an independent sales institution in China. It has a business license to operate and strong capabilities. The operation of this product is led by Mr. LI Qi, Investment Research Director of Jianlicai. Mr. Li holds a master's degree in mathematical economics from Wuhan University and has over 10 years of experience in the securities industry, serving as partner of a robo-advisor consultant and research director in an investment management company. Mr. Li has been focusing on research on mutual and private funds and has deep research experience in fund portfolio and investment strategy. The team has also attracted financial talents from prestigious universities such as Imperial College London and others which are working on this new product 'Shinianbao'. 'Shinianbao' adopts the CPPI (Constant Proportion Portfolio Insurance) strategy. This is a portfolio insurance strategy that dynamically adjusts the portfolio to provide both downside risk protection and maximize potential income as well." Media: "As regulators are mulling very strict oversight, how will it affect the future development of the Group?"
Media: "As regulators are mulling very strict oversight, how will it affect the future development of the Group?"
Forgame management: "Jianlicai's strategic adjustment is a temporary measure, which may have some short-term impact on the user experience. However, with the launch of 'Shinianbao' and the continued technological support from the Group, we hope that the impact will gradually be reduced. In addition to Jianlicai, 'Yunke', the internet micro-lending business under the Group, is also actively developing a big data-related business, and is committed to building a FinTech ecosystem driven by big data. At present, the increased regulatory supervision has become the finance industry's norm. Only those businesses with advanced technological capacity and regulatory compliance can stand out and become the backbone to change the traditional patterns of financial industry. Forgame will, as always, focus on the interests of its shareholders, support the spirit of the regulatory policies, explore opportunities across the FinTech industry, actively implement plans for its next strategic step, and expand its footprint in the FinTech ecosystem.
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About Forgame Holdings Limited (stock code: 484)
Established in 2009 and listed on the Hong Kong Stock Exchange on 3 October 2013, Forgame Holdings Limited is a leading company of mobile games and webgames in China, and is now speeding up the development of FinTech business.
Forgame aims to create an inclusive financial ecosystem and become one of the most influential FinTech companies in China. In December 2016, the Group obtained a license from the government to carry out internet micro-lending business in the PRC. In August 2017, the Group acquired China's leading FinTech platform Jianlicai. In the future, Group is expected to further strengthen the presence in the FinTech market, and provide users with great product experience under the principles of "simple happiness, easy wealth management".
Disclaimer
This presentation contains forward-looking statements. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "confident" and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, Forgame's limited operating history, especially in certain new segment of its business; its ability to develop and operate new games that are commercially successful; the growth of the online game market and the continuing market acceptance of its games and in-game items in China and elsewhere; its expectations regarding demand for and the continuing market acceptance of its financial products; its expectations regarding keeping and strengthening its relationships with borrowers, strategic partners, suppliers and other parties it collaborate with; its ability to attract and retain borrowers and investors; its ability to increase volume of loans; its ability to introduce new products and software enhancements; its ability to protect intellectual property rights; its ability to respond to competitive pressure; its ability to maintain an effective system of internal control over financial reporting; changes in the regulatory environment in any relevant jurisdictions; economic slowdown in China and/or elsewhere; and assumptions underlying or related to any of the foregoing are or become untrue. Forgame does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
