eToro, an innovative and socially-conscious Forex brokerage, has unveiled a cooperation agreement with Lufax Holding Ltd, a Chinese peer-to-peer lender and broker.
Under the partnership agreement, eToro will be enabled to increase its reach among Lufax’s overseas Chinese clients.
Earlier this year, Lufax formed a white label partnership with Saxo Bank, which allows Saxo Bank to provide Lufax’s considerable client base with a seamless experience across the trade cycle, from pre-trade, execution and post-trade services for ETFs and cash stocks initially.
Lufax – a valuable partner
Lufax is at the forefront of a new generation of privately owned financial-service providers in China, as part of Beijing’s effort to revamp a sector dominated by big state-run firms.
P2P lending has become a particularly appealing marketplace, allowing companies like Lufax to bring together many small investors with borrowers, acting as intermediaries.
As one of the industry’s earliest participants, Lufax is considered a leader in the field.
Lufax, established in 2011 with the support of the Shanghai municipal government and as a subsidiary of Ping An Insurance Company of China, Ltd., was valued $19 billion in its latest funding round earlier this year. As of November this year, Lufax has more than 25 million registered users, a quarter of which are active investors.
Bond between Lufax and eToro
The partnership with Lufax comes as no surprise, as Lufax’s largest shareholder is Ping An, which led a $27 million investment round in late 2014 in eToro.
“The Chinese market has an increasingly strong appetite to invest. This new partnership will provide overseas Chinese customers with the most advanced investment tools to trade with our global social trading community,” said Yoni Assia, eToro co-founder and CEO.
According to the latest reports, Lufax plans to launch a complete online platform in 2017, granting wealthy mainlanders legal access to foreign capital markets to cater to their surging demands for asset diversification.