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CEO of Rongzhong Was Interviewed by Xinhuanet

Release Time:2015-03-18The Article Source:xinhuanetviewed:2496

According to the news from Xinhua Exhibition on Mar. 13,  as the Internet financial industry booms in recent years, third-party payment, Zhongchou, P2P are providing consumers more diversified financial consuming channels. To discuss the responsibility of internet financial enterprises in social development and protect the legitimate rights of Internet financial consumers, Xinhua Interview planned a special program about rights protection of internet financial consumers. On the arrival of the 3.15 World Consumer Rights Day, Xinhua Net invited the chairman of Rongzhong Capital Investment Group Co., Ltd. Mr. Xie Xiaoqing to talk about the Internet financial innovation and protection of financial consumer rights.

Xinhuanet host:  Nowadays, the internet financial industry is developing rapidly, and P2P online lending industry is in full swing, what’s the strategy and development direction of Rongzhong in the internet financial industry?

Mr. Xie Xiaoqing: In fact, we have prepared for a long time, and are going to develop the Internet finance this year. As early as in 2010, Rongzhong Net was set up in my guidance to dedicate to the R&D of internet financial products and modern service products. In order to provide the best products, Rongzhong Net invested over 46 million yuan in the past four years. As the major project supported by "national service industry development-oriented funds" of National Development and Reform Commission, Rongzhong has become a nationwide professional internet financial supply chain platform from a professional investment and financing information service platform. Based on our own strength and capability, combined with market demand and enterprise development , we have built the investment and financing information platform. On the basis of many years investment and financing information services, a series of products and services that cover the whole supply chain, such as P2P finance Rongzhong Wealth and bill borrowing are developed gradually. We will also speed up the pace of innovation to provide more and better Internet financial products. In the field of Internet finance, Rongzhong will take a lot of work.


Xinhuanet host:  In 2014, a lot of P2P companies closed down without notice. Now the investors concern about fun security ultimately . You’ve worked for financial service industry for several decades and gained extensive theoretical knowledge and practical experience in financial investment and modern enterprise management. What’s your experience and advice for enhancing P2P risk control?

Mr. Xie Xiaoqing: In my opinion, just as the traditional financial industry, the most important element of internet financial industry is risk control. Compared with the traditional financial institutions, internet financial enterprises lack the awareness of financial risks and experience on risk management, and have no whole process loan financing risk control system. For the emerging internet financial enterprises including P2P Platform, management methods and professionals are available for information audit, pre-loan investigation, loan servicing, post-loan management and risk events response. Credit reporting system is imperfect in our country at the present stage. In order to protect the interests of investors, P2P Platform should moderately evaluate the collaterals provided by financiers, and the loan amount is generally no more than 70% of the collateral valuation. Jointly with independent third-party accounting firms, public notaries, law firms, financing guarantee companies, P2P Platform provides investors with rigorous and comprehensive law and subsequent management services to nip bad debts in the cradle. In addition, since the Internet is a virtual world, enterprises should improve their own evaluation system, audit system and operation system, so as to improve their ability to identify the authenticity and protect the rights and interests of financial consumers. Escorted by advanced technology, they should investigate each loan on the site and complete the onsite registration and approval process.

Xinhuanet host: Then what does Rongzhong Wealth do in P2P financial management?

Mr. Xie Xiaoqing: In 2014, with low threshold, regulatory uncertainty, and even the collapse and runaway events of the industry, Rongzhong Wealth had no overdue payment or impact caused by instable factors of P2P market and relied on a whole set of sophisticated credit risk management and control systems and technical innovation, which ensures the interests of the platform investors. In fact, at the beginning of developing P2P financial products, Rongzhong Wealth has adopted all the Group's financial risk management experience, formed a 360-degree risk management and control in a more safer "Rongzhong mode" to, vigorously promote and cultivate the concept that there are risks everywhere, and they can happen at any time, and risks and opportunities coexist. Perfection of system process, enhancement of risk evaluation and response, continuous improvement of risk management systems and mechanisms and risk prevention and control capabilities will directly contribute to the healthy and sustainable development of the platform, and safeguarding the legitimate rights and interests of investors of Rongzhong Wealth. Rongzhong Wealth, supported by Rongzhong Group in hardware and external support, the Group has been established for 15 years with total assets reaching 3.8 billion yuan, and has been one of the famous enterprises in financial service industry in Hubei Province with a good reputation. Meanwhile, as an Internet financial leader in Hubei Province, Rongzhong Wealth is one of the few enterprises that are under the direct supervision of the government financial office, manifesting its unique safety and credibility. Only such a formal P2P platform with "deep internal forces" can survive and grow strongly into the first echelon of P2P financial platform. In terms of specific risk control measures, we implement rigorous and professional monitoring on the pre-loan, loan servicing and post-loan processes and select the real estate as real mortgage, Once the borrower defaults, the investors will take their priority of claim rights in mortgaged real estate discount or auction price without worry about the security of their property. This mode of P2P mortgage financial platform has not only increased the default cost of the borrower, but also minimized the risk of investors. Considering that the capital independence is an important guarantee of the security of the P2P financial platform, we cooperated with the third-party payment platform "Linkage Advantage" jointly established by China UnionPay and China Mobile, providing the third-party capital independent managing service for each investor. Without the user's permission, authorization or law provisions, Rongzhong Wealth has no right to use investors' funds, which ensures the safety of investors' funds. And the user's funds can only be transferred to the certified and binding bank accounts to avoid the risk of capital loss caused by accounts compromised.

Xinhuanet host: While P2P industry booms, collapse and runaway events also appear, and what is your general view on the prospect of this industry's development?

Mr. Xie Xiaoqing: From the micro view, financing needs and the financial needs of the Chinese market is vigorous. Small and micro enterprises, including personal consumer credit demand are depressed to a great extent, and in face of these two huge demands, P2P provides a good opportunity. From a macro view, I think the fact of survival of the fittest in any industry is a normal phenomenon, there will certainly be people who fish in troubled waters at early time, but after entering the healthy development of the industry, the normal survival of the fittest is inevitable. In a whole, P2P industry will develop in the standard direction, and the platform will have a preferable ability to identify financial risks significantly.

Xinhuanet host: Here's the last topic, "3.15" World Consumer Rights Day is coming soon, we have discussed the financial security of internet consumers, as the provider of internet financial products, how to ensure the maximum interests of investors?

Mr. Xie Xiaoqing: In my opinion, although the Internet has changed the form and business model of the enterprises, the internet does not change and reduce their corporate social responsibility. Internet financial companies are responsible for the hard-earned money of people, therefore their corporate social responsibilities do not decrease, whereas they get heavier along with social contact. For P2P platforms, the first thing to do is to control the risk and ensure steady business operation. It is enterprises' supreme responsibility to protect the interests of investors and contributors. Rongzhong Wealth has learned experience from domestic first-class P2P platforms such as Renrendai, Creditease and Lufax, prepared the "risk reserve", namely withdrawing a certain percentage of amount from each loan as the risk reserve. Use risk reserve of the platform to pay in advance for the bad debts. This mode is superior to the traditional overdue payment in terms of payment time, and avoids the loss of interest for overdue payment. In addition, we introduced the "risk deposit" payment mechanism innovatively with special risk deposit account for specific account. The deposit is in a full frozen state and nobody is allowed to use in the duration. Adhering to the principle of special deposit for its specified purpose only, we guarantee that investors get paid at the first time when the borrower defaults or pays overdue. The risk deposit provided by Rongzhong Wealth is primarily to deal with bad debts. Of course Rongzhong Wealth itself is engaged in full-value real estate mortgage, and the chance to use risk deposit is rare. But risk deposit is the proof of the platform strength, which enhances investors' confidence and prevents short-term overdue funds and runs from affecting the normal operation. At the same time, I think that the responsibility of internet financial enterprises is also reflected in credibility and integrity. Whether it is the internet financial enterprises, P2P companies or P2B platforms, suppliers and customers, buyers and sellers must be relied on credibility and integrity. Secondly, the two sides shall guarantee to be open, fair and transparent. Both a third-party and internet financial practitioner should try to send the information and data obtained in the most open and fair way to each other, in order to establish a more balanced supply and demand relationship and determine more direct purposes of supply and demand. Building credit system is actually the cornerstone of the healthy development of the internet financial industry. On the one hand, it depends on the gradual improvement of the national and supervising macro credit system; on the other hand, it also requires financial institutions, internet financial enterprises and all the investors to make joint efforts to follow and build the micro credit mechanism. In this way, our internet financial enterprises can develop healthily, and the rights and interests of internet financial consumers can be protected. This special topic about protection of internet financial consumers' rights and interests by Xinhuanet is of great significance, playing a role in correct guidance of public opinions and promoting the overall building of credibility and integrity, which has good symbolic and guiding effect on promoting the development of internet financial enterprises.

Xinhuanet host: We also hope to create a healthy development environment for internet finance through the joint efforts of the media, government, industry associations and supervision departments and achieve the protection of rights and interests of internet financial consumers truly and effectively. Thank for Mr. Xie Xiaoqing accepting our interview, and also thank you for your attention to this theme event, thank you.