Consumer Finance: Attitudes about debt change, and ranking adds a category
Traditionally savers, Chinese learn to borrow
Added to the BrandZ™ China Top 100 this year, the consumer finance category reflects a fundamental shift in Chinese society, where historically people have placed a high priority on savings rather than consumption.
Although China continues to have one of the world’s highest savings rates—47 percent of GNP, according to the World Bank—the economy is in the midst of a transition to being driven by consumption rather than production. Easier availability of credit, often online, stimulates spending, particularly among young people.
In the consumer finance category’s inaugural year in the BrandZ™ 100 it includes one brand, Lufax, ranked No.26. Created in 2011 by Ping An, the giant insurer, Lufax has become China’s largest online wealth management brand, with almost 38 million users during the first half of 2018. It is expanding internationally from a base in Singapore.
Officially named Shanghai Lujiazui International Financial Asset Exchange Company, Ltd., Lufax has delayed an IPO, pending a clearer and more positive regulatory environment for peer-to-peer lending. It was among the brands to survive a shakeout of peer-to-peer startups after the government intervened to curtail irregularities.