By Guglielmo de Stefano on Friday 18 December 2015
Product release follows on from the closure of a $84m Series C funding round last April.
Chinese fintech marketplace Jimubox announced today that its moving into core investment products launching a multi-asset class online wealth management platform. The new product will provide Chinese investors with a wide array of financial products, including the like of fixed income, listed equities, and mutual fund products, both onshore and offshore.
As a first-step in transforming online investments, today the platform launched JimuStock, a mobile trading app that enables Chinese investors to open a US regulated brokerage account with no minimum account size. According to Jimubox, this new product is extremely cost effective, with the lowest commission structure in the industry and offering commission free trading during the first 100 days.
The potential for this product seems huge - more than 30 million of young Chinese currently face limited investment options and this product allows them, with one tap, to access overseas capital markets
“Through one Jimu account log-in, our investor base will be able to manage both onshore and offshore investments, including Jimu's marketplace lending products, ETFs, US equities, and onshore mutual funds. We are excited about the innovative financial product opportunities that this infrastructure will enable.”
Jimubox is only a year old and counts Xiaomi, a Chinese tech company amongst its backers. The platform is focused on a relatively young investor base – investors between 18 and 29 years old. According to the business 90% of its investors are under 39 – due in part to the fact that Jimubox requires a minimum investment amount of only 100 yuan.
The platform seems keen to insist that the release of this product is still in line with Jimubox’s vision. Indeed, the Chinese online lender aims to become a platform for retail investors, providing them with powerful tools to build their own diversified investment portfolio. In other words, P2P lending is seen just as a part of Jimubox’s offering and not as its core product.
Dong Jun, Founder and CEO of Jimubox, added:
“While we believe that this fixed income product is an important part of an investor's portfolio, we were only touching the tip of the iceberg in how we were able to service our user base. We see marketplace P2P lending as a product on the platform, not the platform itself."
The release of the app follows on from the closure of a $84m Series C funding round last April. Apparently, the funds were employed to develop the product and built the new infrastructure.
Jimubox is not alone in shaping the Chinese P2P lending industry. This fast growing space counts the likes of Lufax, reportedly close to raising $1 billion with a valuation of $18 billion and Dianrong, said to be looking to raise as much as $500m early next year. Watch this space.