Fosun's Fintech Business Enters Harvest Period, Finloop Projects Asset Management Scale to Surge 10-Fold in a Year

Rhea-AI Summary

Finloop, an independently incubated digital wealth management platform by Fosun Wealth, has entered strategic agreements with several leading fintech companies, including China Asset Management and Ping An of China Asset Management. These agreements aim to boost digital transformation in wealth management and cater to personalized client needs. Finloop's assets under management are projected to exceed HK$10 billion this year, aiming for hundreds of billions in the next three years. Fosun's long-term investment in technology innovation has entered a fruitful phase, with Finloop showcasing industry-leading R&D capabilities. Fosun International Securities has also obtained a virtual asset dealing service license from Hong Kong's SFC, broadening its investment services to include virtual assets. The expected interest rate cuts in the latter half of the year could further enhance the investment climate.

Positive

• Finloop's assets under management expected to exceed HK$10 billion this year, indicating robust growth.
• Strategic cooperation with multiple leading fintech companies strengthens Finloop's market position.
• Fosun's technology investment reached RMB7.4 billion in 2023, a 14% increase year-on-year.
• Fosun International Securities obtained a virtual asset dealing license from the SFC, expanding its service offerings.
• Finloop aims to manage hundreds of billions in assets within the next three years, highlighting its growth potential in Asia.

Negative

• The projected growth of Finloop's assets under management is ambitious and may face market uncertainties.
• Heavy reliance on technology innovation and strategic partnerships could pose risks if market conditions change.

HONG KONG, June 12, 2024 /PRNewswire/ -- Finloop Finance Technology Holding Limited ("Finloop"), a leading digital intelligent wealth management platform independently incubated by Fosun Wealth International Holdings Limited ("Fosun Wealth"), a subsidiary of Fosun International (00656.HK), announced today that it has entered into strategic cooperation agreements with multiple leading fintech companies, including China Asset Management (Hong Kong),  Taikang Asset Management (Hong Kong), Ping An of China Asset Management (Hong Kong), Bosera Asset Management (International), E Fund Management (Hong Kong), Zhong Ou Asset Management International, Hundsun Ayers Technologies, Hithink RoyalFlush Information Network, etc. According to the agreements, the signing parties will jointly integrate their professional expertise and resources in fintech to drive the digital transformation of wealth management at financial institution, meeting  the personalized and diversified needs of clients undergoing digital transformation, providing a full range of financial products and one-stop solutions, and injecting new vitality into the Hong Kong financial market.

Finloop boasts industry-leading research and development capabilities as well as solution implementation capabilities. It is currently the sole fintech service provider in the Hong Kong financial market that offers a one-stop wealth management platform and solutions. Its independently developed technology platform allows it to provide financial institution clients with a full range of wealth management products covering cash management, public funds, privately offered funds, structured products, bonds, and insurance. It can also provide personalized asset management and investment services tailored to client needs. Currently, its client base includes commercial banks, securities firms, cross-border e-commerce platforms, family offices, wealth management firms, insurance brokers, and fund management companies. Finloop's assets under management are expected to exceed HK$10.0 billion this year, representing a tenfold growth. The company aims to reach a scale of hundreds of billions in assets under management over the next three years, endeavoring to become one of the most influential ToB wealth management platforms in Asia.

Technology innovation is one of the important drivers for Fosun's development. Fosun's financial report shows that its investment in technology innovation reached RMB7.4 billion in 2023, representing a year-on-year increase of 14% on a comparable basis. In recent years, Fosun's long-term investment in technology innovation has entered a harvest period, with various businesses, including financial services, yielding successful results.

On 5 June, Fosun Wealth's subsidiary, Fosun International Securities Limited ("Fosun International Securities"), announced that it has obtained the virtual asset dealing service license from the Securities and Futures Commission of Hong Kong ("SFC"). In recent years, the virtual asset trading market has seen tremendous growth potential, and has become a highly contested battleground for major financial service providers. Fosun International Securities' obtainment of the virtual asset dealing service license from the SFC is an important recognition of the company's solid professional financial capabilities and stable and reliable trading platform. This license has enabled Fosun to extend its financial management and investment services in Hong Kong to include virtual asset trading and virtual asset product distribution services. It has also broadened Fosun's trading products and services to encompass virtual asset derivatives, such as exchange-traded funds (ETFs) and virtual asset ETFs.

Fosun's global business presence and robust operational resources have enabled synergies and resource integration between its various business segments, which can drive "multiplier" growth. Fosun International Securities' obtainment of the virtual asset dealing license and Finloop's innovative breakthroughs in the Hong Kong market have demonstrated Fosun's leading edge in wealth management.

The wealth management business offers financial institutions the advantages of light assets, high profitability, and low volatility. It serves as an important stabilizing and smoothing force that helps to steady the business operations of financial institutions, holding tremendous value. Recently, the Hong Kong financial market has returned to an upward trajectory, and the expected interest rate cuts in the second half of the year are anticipated to further boost the investment climate. The market expects a significant increase in institutional investors' asset management needs, marking a crucial turning point. Looking ahead, Fosun's fintech business is poised to fully enter a harvest period and is expected to become an important highlight of Fosun's performance.

View original content:https://www.prnewswire.com/news-releases/fosuns-fintech-business-enters-harvest-period-finloop-projects-asset-management-scale-to-surge-10-fold-in-a-year-302170658.html

SOURCE Fosun

FAQ

What is the projected growth for Finloop's assets under management in 2024?

Finloop's assets under management are projected to exceed HK$10 billion in 2024.

Which companies has Finloop entered strategic agreements with?

Finloop has entered agreements with several fintech companies, including China Asset Management, Ping An of China Asset Management, and E Fund Management.

What are the benefits of Fosun International Securities obtaining a virtual asset dealing license?

Obtaining the license allows Fosun International Securities to offer virtual asset trading and distribution services, expanding its financial management portfolio.

How much did Fosun invest in technology innovation in 2023?

Fosun invested RMB7.4 billion in technology innovation in 2023, a 14% year-on-year increase.

What is Finloop's long-term goal for assets under management?

Finloop aims to manage hundreds of billions in assets over the next three years.