Your Guide to HuaXia Finance

HuaXia Finance Equity Investment Management Co., Ltd.

Your Guide To

HuaXia FinanceHOW YOU CAN PROFIT FROM P2P

Contents

A Solid Start...................................................................................................................3

Principles and Priorities.................................................................................................4

In Credit We Trust, Wealth for Life 1


Our Foundation..........................................................................................................5-6

The Essentials................................................................................................................7

The Cornerstones...........................................................................................................8

Comprehending P2P ....................................................................................................9-13

Risk Management .....................................................................................................14-15

Risk Provision...............................................................................................................16

Peer Growth ..........................................................................................................................17

The Bubble ........................................................................................................................18-19

Products...............................................................................................................................20

Product Timelines...................................................................................................21-22

Contact Information ........................................................................................................23

HuaXia Finance was founded in June of 2015 and currently has over 3,000 employees, registered capital of 100 million RMB, and offices in 37 cities across

China.

A Solid Start

Founded in June of 2015, HuaXia Finance currently has over 3,000 employees, a



registered capital of 100 million RMB, and offices in 37 cities across China. We are proud to call ourselves one of the leading Peer-to-Peer Lending Platforms in China and we have accomplished this through the four cornerstones of our business: trust, transparency, integrity, and risk management. Our Chairman and CEO, Benny Li, with extensive experience in Internet Financial Service Platforms (IFSPs) from working with CreditEase, the HengCheng Group, Citi Bank, Deutsche Bank, and numerous other financial organizations across China, established this organization to be the safest and most secure P2P Company on the market. Additionally, we are the only Chinese P2P Company backed by US Private Equity; Cathay Capital.

The key to our success is in minimizing risk while maximizing profits for both ourselves and our customers. Our Risk Management Division is the foundation for how our business was built and will continue to function for years into the future. We easily differentiate ourselves from the competition by not only following the current rules and regulations, but by anticipating what the next regulations are going to be and adjusting to them prematurely so as not to disrupt the natural flow we have established.

The fundamental differences between us at HuaXia Finance and 99% of the other P2P Companies on the market are simple and straightforward. Firstly; we do not handle customer money directly. All Lender capital goes straight to a payment company regulated by the PBoC (Peoples Bank of China) which our Asset Division then instructs as to its direction into which designated Borrower accounts. Secondly, we do not pool money and act as an online bank, an illegal practice largely used by a majority of the current P2P companies. We at HuaXia Finance value each and every customer as a priority and we invite you to join the team.

Whether you’re a seasoned investor looking to diversify your portfolio and take advantage of a fantastic opportunity, or an individual just starting out and trying to get your feet on the ground, we have a package that is ideal for your situation and your life goals. If you want to start saving up for your child’s college education in a decade, or want to take a free vacation next year, we have a program specifically designed with you in mind. If you need maximum liquidity in-between other investments, or maximum financial growth in order to purchase a house in a few years, we understand you and one of our Expat Financial Advisors will personally work with you to plan your financial future.

Welcome to HuaXia FinanceIn Credit We Trust, Wealth for Life

Our Principles and Priorities

Our three Management Principles and our six Priorities directly guide our business in every decision we make, every single day. Our company has become the leading and

most trusted P2P Internet Financial Service Platform (IFSP) in China and the expat community as a whole because of the solid foundation established by the following

principles and priorities:




Our industry expands directly through the implementation of these principles and priorities which allow us to be the most valued Internet Financial Service Platform in

China.


Our Foundation

Before reading about how P2P works in general and specifically how HuaXia Finance differentiates itself from every other Internet Financial Service Platform, it is

important to know the history of our company, our mission, and our background.

Benny Li, Chairman and CEO

Our founder, Chairman, and CEO; Benny Li, has extensive experience in both the international community and Chinese marketplace through his 22 years of

investment banking, commercial banking, and consumer finance experience with institutions such as CreditEase, the HengChang Group, Citi Bank, Deutsche Bank, and Indo-Sues amongst others. In 2011, he was the general manager of YiXin CreditEase. From the CreditEase Channel Department, he was the general manager of risk and the VP of the HengChang Group. He is Chinese American and achieved his Double

Master’s Degree in Finance and Business from Berkeley in 1992.



Words from Our CEO

“On behalf of HuaXia Finance, I would like to thank all those who have shown an interest in our company.

Over the last 30 years, the world have seen the great accomplishments of the open policy of the China Reformation. The development of the economy has been the

most progressive and outstanding of these accomplishments. Enduring through the Global Economic Recession of 2008 has only strengthened the Chinese Nation.

But, compared to the needs of the entire economy, the revolution of the Chinese Economic System is still behind the needs of the developing world and the needs of the people. The latest meeting of the Central Committee of the Communist Party of

China has given clear instructions for future economic development.

Based on this, as a financial service enterprise with a high social ability and professional skills, HuaXia Finance is willing to find a way during this financial

revolution of China. The main idea of our company is to stimulate consumption and help the small businessman/woman by creating more growth and career

opportunities. In doing this, we can directly contribute to society.

In the era of Internet metadata, we perfectly combined cutting-edge technology with traditional finance through self-improving the mergers and acquisitions strategy. We

created a high technology content Internet Financial Service Platform with an uncompromising work ethic using a very scientific management system. Above all,

we provide clients with a diverse international capital trade platform.

We lead with professional creation and continuously incorporate new ideas. We are willing to welcome everyone with the same goal to join us and perfect this business

together.”

The Essentials of HuaXia Finance



International Focus:

From our founder to our managers, we pride ourselves with an understanding of the needs of the international expat community and the Chinese marketplace. Our Internet Financial Service Platform was specifically designed to accommodate expats. More and more foreigners come to China to work, live, and travel and it is getting harder by the day for them to succeed. We know that people have concerns and requirements and it is our job at HuaXia Finance to make life a little easier.

Our Mission:

We are committed to constructing the most efficient platform for minimizing your risks and maximizing your profits. We believe in honesty, transparency, integrity, and a mutually beneficial environment where everyone profits together. We are at the leading edge of the blossoming P2P Internet Finance Industry and together we can achieve stable financial growth and capital accumulation.

Our Model:

We are industry leaders in the P2P Internet investment field and we achieved this by treating each customer individually, by giving you the time and consideration necessary to make the absolute best decision about your financial future. Our model was designed from the ground-up with the belief that trust, transparency, integrity, and risk management are the cornerstones to the foundation necessary for financial security.

Striving for Lender Safety:

Most, if not all, P2P companies will promise you, the client, safety by expressing how advanced their screening process is. We can proudly say that our screening process is one of the most encompassing in our industry. Not only do we investigate a potential Borrower’s occupation, education, background, goals, and family history, but we also have a face-to-face meeting with them; a thorough interview with every single person whom we may trust with our business and yours. Lender investment safety is absolutely the most important aspect in the P2P world. Our cornerstones of trust, transparency, integrity, and risk management ensure that you are always our top priority.

The Cornerstones of HuaXia Finance



1. Trust:

Trust is the most important aspect in any partnership. It is only through trust that a partnership can flourish. Trust is the initial way that any two parties meet, and before another step can be taken, trust must be a mutually shared attribute. We want to have a shared trust, and only through an open, transparent structure can our relationship begin.

2. Transparency:

Transparency is directly correlated, and necessary, for trust to initially exist. Transparency is fundamentally important and we proudly say that we work at the most transparent P2P Internet Financial Service Platform in the Chinese marketplace.

We are very open about our trade volume, daily transaction amount, number of employees, cash flow records, default rate, auction time, etc. You are more than welcome to visit our headquarters in Shanghai and once a month we hold tours of our Risk Management Division so you can be assured that your money is only lent out to Borrowers who pass a rigorous inspection.

3. Integrity:

We adhere strictly to the spirt of the law set forth by the Third Plenary of the 18th Term of the Central Committee of the Communist Party of China. Integrity means that you always have a right to information, and your needs are put before our own so that we will always ensure you are taken care of and achieve the maximum benefit. Our integrity is financially back by our Risk Provision.

4. Risk Management:

The Risk Management Division is the backbone of our company which instills a system that will allow HuaXia Finance to continue growing for years to come. Our Risk Management Division has an encompassing, 3-step procedure before lending out money, and a firm debt-collection program which ensures maximum payback rates.

Comprehending P2P

If you have not heard about P2P or do not know how it functions, this section will



describe the evolution of P2P, illegal models, and the only legally accepted model; our model. Should you have any further questions about the structure of our

company, do not hesitate to ask. We know that the P2P marketplace can be difficult to understand at times and

everyday there are more and more stories of cardboard companies absconding with client capital.

Please note the differences and legal problems associated with some IFSP models.

1. Basic Offline P2P:

P2P, or peer-to-peer, is the lending of money from one individual to another and then getting a return (in the form of interest) when the loan is repaid. Imagine that a good friend whom you have known for some time comes to you and wants to buy a car. He or she is married; with a working spouse, a stable job, a big house, and no exorbitant debts (He or she shows you their credit history). The only reason they want to buy this car is because their last car broke and they would need to take a loan out from the bank at 25% to afford a new car at this time. You, being a good friend with an eye for an investment, say that you’ll lend them the $10,000 they need for 6 months if they will give you 10% interest on top of that (20% a year).

With this simple example, you can see how profitable a loan to a friend would be. This illustrates the concept of a very safe investment which you have a strong belief

would yield a return upon maturity. This, in our hypothetical Lender’s mind, was considered a very safe investment.

What you may not have noticed is that “you” used all four cornerstones of HuaXia Finance to determine this was a safe investment.

1. Trust: A good friend you have known for awhile2. Transparency: You know their job, spouse’s job, and credit history


11,000 RMB

10,000 RMB

July 1st

January 1st

Your FriendYou

Your FriendYou


3. Integrity: They are honest about the reason they’re borrowing money4. Risk Management: A combination of knowing their job, their spouse’s job,

and their address to alert the authorities in case they decide not to pay you back.

The concept of peer-to-peer lending is remarkably simple. The complexities arise when credit checks, occupational verification, and mispayment/default come into play. Offline P2P between friends would be remarkable and imagine how fast you could double your wealth if you could lend out money to all your close friends and get back a 20% return on investment compounded yearly (less than 4 years). This is

not the case for most of us so online P2P lending comes into play.

2. Basic Online P2P:

You, our hypothetical Lender, have now run out of friends to lend money to but you’ve heard of online P2P sites which connect Lenders and Borrowers through an online platform. The absolutely most basic online P2P model would have this configuration:

Let’s assume that you are lending 100,000 RMB of your money out at a 20% a year interest rate, compounded yearly. That would mean that in 1 year, you would receive 120,000 RMB which would be phenomenal and enough to pay for a small vacation for you and your family. The main problem with this is that all your money is lent out to a single person whom you’ve never personally met. If this person defaults on their payment, is late on a payment, or goes into bankruptcy, you will receive less than the declared interest rate or effectively lose all your money. We will cover the problems with the company structure itself later.

3. Diverse Online P2P:

The next evolution of the P2P platform involves diversifying the client’s money by taking the loan and spreading it out between a number of Borrowers to make the process slightly more secure (assume 1 Lender per 10 Borrowers). In this way, each Borrower gets 10,000 RMB and still pays a 20% interest rate back to you.


1 BorrowerP2P Company1 Lender


As you can tell, this method diversifies the invested capital while still giving the client a 20% return after a year on the 100,000 RMB investment as each of the 10 Borrowers are being loaned 10,000 RMB and repaying 12,000 RMB (10 Borrowers x 12,000 RMB = 120,000 RMB).

Suppose there was a problem and one Borrower completely defaulted without being able to pay back any of the interest or principle. This would still mean that the client would receive 108,000 RMB (9 x 12,000 RMB) or an 8% return on the investment, still a fantastic yearly return for a seemingly safe financial product.

The Big Problems:

These exact prior models and the extrapolation of them have, and still are, constructed by P2P companies everywhere across China and abroad. It is illegal, amoral, and fraudulent in design, eventually leading to a situation in which the companies vanish with client capital. What the P2P platforms above are doing is holding customer wealth themselves, if even for just a nanosecond, leading to a high risk of the company simply going offline and shutting its doors one day to abscond with their clients’ money. In our above example, 100,000 RMB is not really enough to embezzle, but imagine that there are thousands of Lenders and tens of thousands of Borrowers.

The numbers quickly add up to one company having hundreds of millions of RMB flow through an “executive account” every second of the day. 100% of these companies will either turn into a Ponzi Scheme and collapse or simply disappear. These are the most prevalent P2P IFSP structures on the market today.

Moreover, these P2P Companies with direct influence over the customers’ money are acting as a bank, by pooling capital together, lending it out in batches, and paying back investors as they need to. In the above examples, companies with thousands of Lenders and tens of thousands of Borrowers will simply put the customers into two groups: Assets and Liabilities, and they are paid and repaid from a capital collection pool, constantly flowing into and out of a private bank account.


10 BorrowersP2P Company1 Lender


4. The Only Legally Accepted P2P Model; Our Model

Our team of financial experts has designed our business model from the ground up to maximize safety and achieve the highest return on investment for both our organization and you. We can proudly say we are one of just a handful of P2P organizations which are meticulously built with safety and sustainable growth as a top priority.

The following is the only legally accepted P2P model in China. This is the model of HuaXia Finance, which is built by separate legal subsidiaries in order to complete the cycle involving origination, underwriting, market making, and distribution which adds an extra layer of safety for the investors and avoids any conflict of interest within the group.

The fundamental difference between our model and 99% of the other P2P companies on the market today is that we do not handle customer money directly. All accumulated wealth goes from the lender to PBoC regulated payment companies which insure protection of the capital against fraud/bankruptcy. This initial chain of events is regulated by our Wealth Management Division. From there, our Asset Division directs the flow of money to the Borrowers specifically assigned to that Lender which have been thoroughly investigated by the Risk Management Division.



The Flow

1. The Risk Management Division investigates a potential Borrower to ensure that they are reliable. If they meet the qualifications, their order is processed.

2. The Wealth Management Division coordinates with a Lender as to which of our products would be most properly suited to their needs.

3. Once the Lender has selected a product, their money is transferred into a payment company regulated by the PBoC (Peoples Bank of China).

4. The Asset Division brokers the deal and then directs the funds into the account of the Borrowers specifically assigned to that Lender. (T+1)

5. The Lender receives a list of precisely who is borrowing his or her money.6. As the Borrowers pay back their loans into the escrow account, the Asset

Division directs an amount back to the Risk Management Division where it is added to the Risk Provision (which we will discuss later), an amount is taken in the form of fees, and the rest is transferred back over to the Lender at either the end of the term where principal and interest are redeemed upon maturity or at the predetermined intervals depending on the investment product chosen.

A timeline of events for a hypothetical investment will be presented after “Our Products” on pages 21 and 22

Risk Management

Our Risk Management Division with CEO Li Yang Bo sets us apart from all other P2P companies on the market today. Our Risk Management Division conducts a thorough, multi-stage interview on any Borrower that might be interested and prepares a Risk

Provision in the event of Borrower default.Since our average ticket size for Borrowers is 50,000 RMB, the Risk Management

Division is vital and responsible for making sure that you get the maximum return possible on your investment.



Risk is minimized before borrowers are ever lent money by researching the:

1. Age of applicant2. Current and former jobs3. Family history4. Health condition5. Marital status6. Legal/gambling history7. Place of birth8. Ensuring they are not on the “blacklist” of any financial institutions

The process for a Borrower:

1. They fill out an online application for a loan which is then crossed against our list of requirements and blacklist.

2. We make phone calls to them, their family, and their employer to ensure that they have not fraudulently filled in the application.

3. A Face-to-face interview will be conducted with someone from the Risk Management Department who will determine if they are eligible for a loan.

The Overall Acceptance Rate for Borrowers is between 30-35% depending on the season

13 Immediate Disqualifiers for Borrowers

1. Anyone who has had a negative financial court order ruled against them 3 times in 5 years, or once in the last year

2. Anyone who is in the military, police, or a clandestine agency3. Anyone who is a property/security/insurance agent (unless they own a home)4. Taxi Drivers, Door-to-door salesmen, or those working in an organization with

a “pyramid-esque” structure (Amway)5. Anyone who is involved in illegal activities of the night, private investigation,

or private security (Bar, Personnel, Property, etc.)



6. Skydivers, racecar drivers, stuntmen, or anyone who is involved in a dangerous occupation

7. Fire Marshals or Emergency Personnel classified as a first responder8. Anyone who is unemployed or disabled to the point of being unfit to work9. Anyone who has/had a bad record with us or has provided fraudulent papers10. Anyone who is in the same sector (CreditEase, RenRenDai, Jingrong, etc.)11. Anyone who works for a company currently under indictment/ financial

restriction12. Anyone who has no credit history or lives outside of a 2 hour radius13. Anyone who works in a dying sector (Such as steel, iron, etc.)

In the Event of Borrower Default

In addition to the in-depth investigation into the Borrower’s background before they’re trusted with your money, we also have a “worst-case scenario” collection

model for if they decide not to repay the borrowed money:

1. After missing an interest payment and 29 days elapse; emails will be sent to them, their family, and their employer daily. Messages will also be sent to their social media accounts asking for the repayment.

2. After missing an interest payment and 59 days elapse; calls will be made to them, their family, and their employer daily. Messages will still be sent to their social media accounts asking for repayment.

3. After missing an interest payment and 89 days elapse; a young female from our debt-collecting service will be sent to their place of employment and personally demand repayment from them, their boss, or their coworkers.

4. After missing a payment and more than 100 days elapse; the local police will be notified.

Risk Provision

This is the most important facet separating us from the competition.

In addition to using a comprehensive system for managing risks and collecting debt, there is also a 7% built-in Risk Provision, regulated by the Bank of Shanghai, for dealing with customers who fail to repay and default on their debt. If we lend out money at 24% to a Borrower and pay a Lender 12%, the additional 12% makes up our 7% Risk Provision, fees, and expenses.

The average estimated default rate for P2P Borrowers across all IFSPs is slightly



higher than 6%. Using our Risk Management system, we aim for a 5% default rate, thus ensuring that our 7% Risk Provision will be more than enough to cover any defaulting Borrowers and allow our Lenders to receive maximum profit.

This Risk Provision was specifically designed for you and the growth of our company relies upon it for smooth, seamless transactions. Conceivably, an average Lender (340,000 RMB investment) will have money lent out to 10, 15, 20, or more Borrowers. If you selected our Macau Plan which gives you a 12% annual return on investment, you will receive 380,800 RMB at the end of the year (40,800 RMB profit). If you were to invest in most other P2P companies which do not have a Risk Provision structured exactly like ours and 25% of your Borrowers default, you will effectively lose money.

Our Risk Provision is designed for the worst-case scenario and is established by pooling all “excess risk” capital collected and utilizing it for the “just-in-case” one Lender had all of his or her Borrowers default. Under our shared Risk Provision, even if all of your Borrowers defaulted, you would be protected by our Risk Management Division.

Minimize Risk. Maximize Profit.

Next, an explanation of the unique P2P IFSP environment in China and the impact of the gravitation towards consumerism will be presented.

Peer Growth

The Appeal of P2P in China and why it’s Essential for the Current Governmental Encouragement of Consumerism

P2P lending has quickly become one of the fastest growing financial products in China and it has been largely credited with helping the neglected sectors of the community who have had trouble receiving loans from the bank in order to fund educational costs, vacations, small businesses, etc.

The P2P industry has been enormously successful in China because of the lack of a concrete “credit” system, such as a FICO score in America. This lack of a trusted



credit rating means that banks assume most middle-class people are going to be unable to pay back any of their loans and therefore avoid lending to them.

The rise of consumer spending has led to the new middle-class of China purchasing more luxury goods and spending more money on entrepreneurial ventures, vacations, healthcare, weddings, and self-improvement. The only problem with this is that the Chinese banking system doesn’t have a credit card structure established like the rest of the developed world and it’s very hard to get a personal or small-business loan.

P2P companies have filled this gap and have given loans to the neglected areas of the market which are unable to go to a bank and open up a credit card or get financing for a car, wedding, etc. P2P has been so popular in China for these reasons and the rates of return are a huge attraction for investors, especially expats.

Most of us that moved to live and work in China are paid in RMB, a currency which, as a foreigner, cannot be used to buy Class A shares or participate in the stock/bond markets as we normally would in our home country. We as expats have money here that we earned but cannot easily invest to prepare for our future. Should we invest it into a bank, will make a rate of return that can barely keep pace with inflation and the continuing devaluation of the currency.

We at HuaXia Finance answer the question of what opportunities foreigners working in the mainland have when deciding how to invest their money in order to achieve stable, safe, and reliable financial growth. It is the expat market that can utilize P2P investing in order to enjoy the benefits of capital accumulation and financial growth

in China as they would anywhere else in the world.

The Bubble

As numerous P2P IFSPs are founded and go bankrupt every day, the overall market and looming financial regulations exhibit similar signs as the “Dot-com” industry prior to 2000. There are significant differences though which will allow HuaXia

Finance and a few other P2P specialized IFSPs to prosper during this time.

As of October, 2015, there were over 2,238 P2P Internet financial service platforms operating in China alone. It is estimated that 95% of these are “pooling resources”, clearly breaking the law regulating Internet Financial Service Platforms which states that every Lender must be matched up to a designated Borrower(s). Lender A cannot pool money to share a Borrower with Lender B.



If you assume that 95% of the existing 2,238 P2P Companies are in a quasi-legal state (or just illegal) and are pooling money through Asset-Liability Grouping, there are 112 P2P platforms remaining which are not acting as banks. Once another 75% of these remaining are removed for directly handling the flow of their clients’ funds, you are left with about 30 completely legally recognized P2P Companies in China. By the end of 2016, there should only be 5 P2P Companies left which follow our model.

There will be a “bubble burst” of P2P Companies as the number of Internet Financial Service Platforms has grown rapidly over the past few years and has increased 300% from 2014-2015. The coming governmental regulation of the manner in which most of these companies conduct business will shut their doors instantly. We sleep soundly at night, and you should to, knowing that we have prepared thoroughly for any new regulations and our shared business will not be affected.

The IFSP “bubble” of industries will initially cause a massive default rate to Lenders from improperly established P2P companies (just over 2,000 companies). The Borrowers will naturally gravitate towards the remaining 30 (estimated) P2P IFSPs remaining and this will lead to a high rate of mismanaged funds by previously secure P2P companies due to the increased volume of applicants and the differing loan amounts required.

Initial problems with the flood of new clientele loan applications will be screening and processing the applicant Borrowers since many of these companies have very few, or no, Risk Management personnel. Many of these remaining P2P IFSPs after the initial burst will simply fulfill every application they receive to obtain the biggest market share from the fallout. Without an established Risk Provision greater than the average rate of default, the results of obtaining new, unverified clients too quickly will lead to exponentially increasing default rates among Borrowers, bankrupting formerly legally established P2P IFSPs that initially survived the collapse of the bubble.

The second substantial problem will arise with P2P IFSPs that focus on smaller loan amounts to Borrowers (100-5000 RMB) and small investment amount from Lenders (5,000-20,000 RMB) attempt to seize the “new” Borrowers who are interested in 40,000 RMB loans and Lenders that are attempting to invest over 500,000 RMB.

The vast majority of completely legally accepted P2P IFSPs on the market today without a risk management department succeed purely by the fact that their average Borrower is only being lent 500 RMB over the course of 1-3 years and may only have to repay 30 RMB a month. This minimal monthly online payment keeps many people



from defaulting because, even though the interest rates are equitable to larger Borrower/Lender specified companies, the monthly payment is so low that paying the bill online is easier than dealing with legal repercussions of defaulting.

The business structure of HuaXia Finance was designed specifically with the understanding that increasing financial regulations will affect 99% of the P2P IFSP community. Our expertly managed Risk Management Division and established Risk Provision will not be affected in any way by new regulations due to our use of payment companies regulated by the PBoC and our Asset Division specifically matching Lenders with Borrowers. Our average Lender invests 340,000 RMB and our average Borrower is lent 50,000 RMB. Even though there will be an exponentially increasing number of potential Borrowers who will apply after the “bubble burst”, we will not lower our standard of perfection or compromise our Risk Provision. Every investor or investee must meet our standard so that we may meet theirs.

We at HuaXia Finance believe in trust, transparency, integrity, and risk management. These are the essentials in which our business was founded and the most important aspects that will allow our business to thrive. We are the leading P2P IFSP on the market today because we have structured our business to adapt to the future needs of the consumer. By looking at what the P2P IFSP regulations might be in the future and adjusting to them now, we stay a step ahead of regulation and a mile ahead of the competition. Our products are designed for the differing needs of each and every client and your capital safety is our top priority.

Products

The following is a chart of the 8 products we currently offer which have been specifically designed in order to offer maximum flexibility if you just need a short-term boost, maximum profit if you are saving up for the future, or a stable interest

rate revenue stream throughout the year.

Investment Plan

Annual Rate of Return

Duration of Loan (In Months)

Minimum Investment

Redeemed Upon Maturity

Nanjing 13% 36 50,000 RMB Principal and Interest

Shanghai 12.5% 24 50,000 RMB Principal and Interest

Hong Kong 11.5%` 18 50,000 RMB Principal and Interest

Beijing 10.5% 12 10,000 RMB Monthly Interest PaymentsPrincipal Upon Maturity



Macau 10.8% 12 10,000 RMB Principal and Interest

Chengdu 8.5% 9 50,000 RMB Principal and Interest

Shenzhen 8% 6 50,000 RMB Principal and Interest

Hangzhou 8% 6 50,000 RMB Monthly Interest PaymentsPrincipal Upon Maturity

Xi’an 6.5% 3 50,000 RMB Principal and Interest

Xiamen 5% 1 50,000 RMB Principal and Interest

The products are arranged from longest to shortest term and highest to lowest annual rate of return on your investment.

There is no difference in the “grade” or the “safety” of your investment. All Lender amounts are diversified evenly to a range of Borrowers and every Lender is covered equally under our Risk Provision. We recommend you speak with an Expat Financial

Advisor who would be more than happy to meet with you and discuss which plan would be best suited to meet your financial needs.

The following pages present timelines of events for hypothetical investments

Product Timeline

For our first example below, we will assume that an investor has selected the Shenzhen Plan with an investment of 100,000 RMB. From the chart on the previous

page, you will note that this investment pays an 8.5% annual interest rate with principle and interest redeemed upon maturity in 6 months.

Contract signed January 1st.



During this time, the Risk Management Division will be reporting to the Asset Division in case there are any Borrower problems and how the Risk Provision will be used in order to ensure your returns. If a Borrower repays their current loan, you will

also be notified how your capital is re-lent to a new qualified Borrower, whom you will be informed of, so your rate of return is unaffected.

Fundamental aspects of our timeline:1. All orders from Lenders are filled on a T+1 schedule. We will not, and legally

cannot, accept capital unless there are Borrowers ready to be paired to it.2. One week after pairing of the Lender capital to the Borrowers, the Lender will

receive a report of how much of their money was lent to whom.3. At the date of maturity, the investor (Lender) receives interest and principle;

104,250 RMB for the Shenzhen Plan in this example.4. The interest profit of this plan is 8.5% a year, or 4.25% in the time allotted.

For our next example below, we will assume that an investor has selected the Beijing Plan, one of our most popular, with an investment of 100,000 RMB. From the chart on the page 20, you will note that this investment pays an 11% annual interest rate with principle redeemed upon maturity in 12 months but with a monthly interest

payment of 1%. Contract signed January 1st



Fundamental aspects of our timeline:1. All orders from Lenders are filled on a T+1 schedule. We will not, and legally

cannot, accept capital unless there are Borrowers ready to be paired with it.2. One week after pairing of the Lender capital to the Borrowers, the Lender will

receive a report of how much of their money was lent to whom as well as any updates on a monthly basis.

3. The Lender receives an Interest Payment every month4. At the date of maturity, the investor (Lender) redeems the last interest

payment and principle; 111,000 RMB through the Beijing Plan in this example.

5. The interest profit of this plan is 11% a year or 11,000 RMB

Contact Us Today

Let us help you diversify your wealth, build your portfolio, and achieve your financial goals as soon as possible.

Huaxiafinance.com

(+86) 4000-466-600 (Chinese)(+86) 1362-1748-185 (English)

[email protected] (Chinese)[email protected] (English)



763 Mengzi Road, Hong Kong Prosperity Tower, 8th and 9th Floor, HuangPu Shanghai

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Your Guide to HuaXia Finance