Jimubox, the leading Chinese fintech marketplace, today announced the launch of an intelligent advisory platform; a multi-asset class, multi-product type online wealth management platform that will uniquely serve the next generation of Chinese investors.
Over the last two years, Jimubox has built a large-scale financial marketplace with a proven track record of providing a unique user experience to a crucial Internet user base, 25-45 year-old affluent Chinese investors. These new initiatives will leverage Jimubox's existing market position and reduce the barriers to building and managing a diversified investment portfolio, with seamless access to fixed income, listed equities, and mutual fund products, both onshore and offshore, from one mobile interface.
Since closing an $84mm C round financing in April of this year, the Jimubox team has built the infrastructure to enable these new product offerings, was granted a license from the China Securities Regulatory Commission (CSRC) to distribute mutual funds online, and developed the technology, US regulatory requirements, and custodian partnerships to permit direct access to the US securities market for Jimubox's online investor base.
Technology as a Solution to the Wealth Management Dilemma
"The emerging Chinese affluent class, a market segment consisting of more than 30 million people with total investable assets between $50,000 and $500,000, faces problems such as limited investment options, inadequate financial product knowledge, and a difficult time finding customized and objective financial advice. Technology is the key to solving these problems by combining intelligent advice with a portfolio management strategy that includes a variety of asset classes to reduce the overall risk of an investment portfolio," said Dong Jun, Founder and CEO of Jimubox.
"From the very beginning, we had the vision that Jimu would be an Internet platform for retail investors to come online and build their own investment portfolio. Our marketplace lending investment product has been very well received in the market, and has built up a large and loyal investor base. 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," Dong Jun stated.
Direct US Market Access for Chinese Individual Investors
As a first-step in launching the intelligent advisory platform and with the goal to expanding the investment opportunities available to its user base, today Jimubox launched JimuStock. Through JimuStock's mobile trading app, PRC investors can open a US regulated brokerage account in less than 5 minutes and with no minimum account size. In addition to this best of breed mobile-based account opening experience, JimuStock claims the lowest commission structure in the industry including the first 100 days commission free. The move is likely to usher in a new era for Chinese individual investors to tap the overseas capital markets. "By reducing the friction in accessing the US capital markets, we are changing the game for our user base, delivering them the ability to build a globally diversified investment portfolio. 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," said Barry Freeman, Co-Founder of Jimubox.
Knowledge Driven Financial Content Meets Trading Execution
Jimubox believes that its investor base will always want to be directly involved in selecting the assets in their portfolios. With this in mind, Jimubox announced its knowledge driven trading solution, JinNang. "Chinese investors often face limited investment options and many do not have adequate financial product knowledge. JinNang is 'financial content meets portfolio trading and execution', combining financial education with real-time, tradable financial products," said Dong Jun. Through the delivery of original financial content, Jimubox will educate its user base about current events, market trends, financial planning, and investment basics. JinNang then provides a selection of tradable financial products that matches the financial content. "We believe that JinNang will help educate our investor base and at the same time be a catalyst for responsible investment decisions," Dong Jun further stated.