(Yicai Global) July 18 -- Lu International (Singapore) Financial Asset Exchange (PTE) Ltd., the international business platform of Shanghai Lujiazui International Financial Asset Exchange Co. (Lufax), has officially opened in Singapore after obtaining the in-principle approval for its Capital Markets Services License from the Monetary Authority of Singapore, Ping An Insurance (Group) Company of China Ltd. [SHA:601318] said yesterday.
Pin An has become the first Chinese fintech firm to headquarter its overseas operations in Singapore. Singaporean finance authorities have expertise, are strict and have the guts to innovate, said Ma Mingzhe, Pin An's chairman and chief executive. Singapore acts as a financial hub in China's One Belt, One Road initiative, Ma said. Lu International's development in Asia aligns with China's strategy.
Lufax was founded by Pin An in Shanghai in 2011 and has become China's biggest online asset management platform. Lufax had 30.13 million registered users and 7.65 million active ones as of the end of March, Pin An's first quarterly report for this year showed. Lu International was incorporated in Singapore in January. After being licensed, it will provide securities trading, asset management, trusteeship and wealth management services for investors with overseas bank accounts or assets.
Gregory Gibb, CEO of Lufax, said that Lu International targets middle-class clients who do business in, purchase properties in, emigrate to or have children studying in other countries, because they are likely to have idle US dollars in their overseas bank accounts. "Initially, we will provide them with three to five moderate-return products, followed by monetary funds, fixed-income products, bond funds, real estate investment trust funds and ETFs in the future," he said.
Lu International will principally serve Southeast Asian clients who have overseas bank accounts. Law bars the company from serving Singaporean citizens and green card holders.