This is a series of articles aimed at making people aware of the endangered Unicorns that exist among us.
It is not their fault that they are endangered. It’s the price and pride of ownership. So where along the way the decision was made to feed them more than they can consume and that lean was not as import as means.
Some of the unicorns have done well on this diet. Others have not. We don’t pass judgement on the individual unicorns. We just highlight the herd for your awareness.
Currently we have gained a new Unicorn and the count is 155. In other words we are one short. (Which I would make a case should be more than one ;<) ).
Lufax is short for Shanghai Lujiazui International Financial Asset Exchange Co. and according to the WSJ they have “7 million registered users [and have] arranged more than 200,000 loans worth $2.5 billion.”
The idea of peer-to-peer [P2P] lending is to bypass the bankers so that the lenders can recoup principal and interest directly. This increases the chance of individual defaults and makes risk unmitigated. In China, the banking industry has not matched the need of small firms and consumers so LuFax is a well known alternative. However, it is not the only alternative.