Benzinga | Nov 3, 2020 07:35AM EST

Lufax Holding Issues Statement On Consultation Paper On Microloan Restrictions; Says Does Not Expect The Consultation Paper To Have Any Material Impact On The Company's Business Operations

SHANGHAI--(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.