Hebaodai.com

About Hebaodai.com

Shenzhen Hebao Financial Information Consulting Co., Ltd., operating under the brand Hebao Financial (Hebaodai.com), was established on September 3, 2014. The company positioned itself as a peer-to-peer (P2P) lending platform, a segment of the internet finance industry that gained significant traction in China around 2013. Its business model connected individual investors with borrowers, bypassing traditional financial institutions. For users with surplus funds, the platform offered wealth management products to generate returns. Conversely, it provided a channel for individuals and businesses in need of capital to apply for loans.

The platform's operational structure involved a four-party model: "investors-Ebaodai-cooperative institution-borrowers." Hebao Financial would vet and partner with external loan companies, asset evaluation firms, and guarantee agencies. These offline partners were responsible for the initial examination and qualification of potential borrowers. Hebao's online platform then facilitated the connection with investors. A key feature promoted by the company was its use of third-party fund custody to manage finances, along with guarantees from partner institutions that promised to cover 100% of the principal and interest in case of a loan default.

However, the company's operations came under legal scrutiny. In January 2022, the Shenzhen Public Security Bureau opened an investigation into Hebao Financial for suspected illegal absorption of public deposits. Authorities took criminal coercive measures against several individuals, including Wang Tianyu, the actual controller, and another suspect named Liang Jianheng. The investigation revealed that between September 2014 and August 2019, the company, in cooperation with Ligia Group, illegally absorbed over 58.5 billion yuan from the public through its P2P platform, with more than 5.8 billion yuan remaining outstanding. In October 2023, the People's Court of Nanshan District, Shenzhen, sentenced 12 individuals, including Wang Tianyu, to prison terms for the crime of illegally absorbing public deposits.