How going by the book helped Hong Kong start-up VCredit weather China’s breakneck consumer finance market
Company is seeking up to US$200 million from its Hong Kong market debut this month and founder Stephen Liu Sai-wang says having a clear business model and complying with laws have helped it prosper
When Stephen Liu Sai-wang set up online consumer finance firm VCredit a dozen years ago, he wondered whether his “follow the rules” Hong Kong approach to business would allow him to prosper in mainland China’s breakneck, anything-goes environment for start-ups.
Now, in the face of ever tighter regulations as Beijing moves to rein in what it sees as risky financial lending, and after the collapse of thousands of online finance ventures, he sees the merits of playing it by the book.
“I know it’s a wild market. China is like a paradise for adventurers, sometimes the more daring you are, the faster your business grows,” Liu said in a recent interview.
“But I think I have some Hong Kong genes – a clear business model and compliance with rules and laws. I do what I can, and make the money that I can make. I think this is also the commercial culture of Hong Kong.”
The company, backed by private equity firm TPG and Chinese investment firm Citic, is preparing for its trading debut on June 21 in Hong Kong after its initial public offering, seeking to raise US$200 million. It will be the first Hong Kong listing by a consumer fintech firm this year after China began the crackdown on online consumer lending as part of a broader drive to contain financial risks.
