Davis Polk Advises CreditEase Holdings (Cayman) Limited on its Business Realignment with Yirendai Ltd.

Davis Polk advised CreditEase Holdings (Cayman) Limited in connection with its contribution of certain business operations, including online wealth management targeting the mass affluent, unsecured and secured consumer lending, financial leasing, SME lending, and other related services or businesses (“Target Business”) to Yirendai Ltd for a total consideration of 106,917,947 newly issued ordinary shares of Yirendai and RMB889 million cash, as may be adjusted in accordance with the pre-agreed mechanism, at the transaction closing.

Yirendai Ltd. is a leading fintech company in China, connecting investors and individual borrowers. Yirendai provides an effective solution to address largely underserved investor and individual borrower demand in China through an online platform that automates key aspects of its operations to efficiently match borrowers with investors and execute loan transactions. Yirendai deploys a proprietary risk management system, which enables it to effectively assess the creditworthiness of borrowers, appropriately price the risks associated with borrowers and offer quality loan investment opportunities to investors.

CreditEase, founded in 2006, is a leading fintech conglomerate based in Beijing, China, specializing in inclusive finance and wealth management, including payment technology, credit analysis and management, robo-advisory, insurance technology and blockchain products and services. CreditEase actively engages with global fintech innovators through business incubation, commercial cooperation and investment.

The Davis Polk corporate team included partner Howard Zhang and registered foreign lawyer Mo Zhou. All members of the Davis Polk team are based in the Beijing office.