China Lending Arranges Partnership With Zhong Lian in Consumer Financing
The stock in the Chinese lending provider jumped 4 percent on the news of the five-year agreement.
China Lending Corp. (Nasdaq: CLDC) announced Monday its five-year strategic partnership with Zhong Lian Jin An Insurance Brokers Co. Ltd. in the development of consumer financing and litigation guarantee business, sending its shares up 4 percent intraday to 88 cents apiece.
CLDC, which provides financial services, said it will utilize its market resources to help Zhong Lian to expand its insurance customer base and sales channels. In turn, Zhong Lian will leverage its existing customer base with over 90 branches in China to accelerate China Lending's sales in consumer financing services, according to the statement.
CLDC said it also introduced Zhong Lian to its business partners, Urumqi Haoyi Yuntian Information Technology Co., Ltd. and Gongdao Network Technology Co. Ltd., focused on developing online litigation solutions.
Under the agreement, Zhong Lian will provide litigation guarantee insurance products for customers from Gongdao's online litigation portal and serve as the exclusive insurance broker in the Xinjiang Uyghur Autonomous Region. Haoyi Yuntian will provide intellectual property support in the project, while China Lending hopes to profit from the synergies.
"Our partnerships with industry leaders such as ZLJA and Gongdao are representative of our ongoing efforts to expand into new business verticals while enhancing the quality of our product offerings," Jingping Li, the chief executive officer of China Lending, said in a statement.
"We believe that our partnerships with both ZLJA and Gongdao will facilitate our expansion into the insurance business in the Xinjiang Uyghur Autonomous Region," Li concluded.
China Lending is headquartered in Urumqi, the capital of Xinjiang Autonomous Region, and Hangzhou, the capital of Zhejiang province, serving micro, small- and medium-sized enterprises and individuals.