GS - China Fintech Monthly Update - 202012 v05

China Monthly FinTech Update | Issue #7
Goldman Sachs (Asia) L.L.C.

December 2020
Table of Contents
I. Greater China FinTech Sector News

A. Industry and Regulatory Updates
B. Earnings Update
C. Company News
D. Recent FinTech Conferences in Asia
II. GS Research Commentaries
III. Recent US Regulatory Developments Affecting Foreign US-Listed Issuers
IV. China FinTech Trading Update
V. Selected GS Case Studies and GS FinTech Sector Credentials
2
I. Greater China FinTech Sector News
A. Industry and Regulatory Updates
Latest Industry News and Regulatory Updates (1/4)
CBIRC Releases New Regulatory Guidance on Online Insurance Business (“Guidance”)

Reuters (14-Dec-2020)
Highlight:
The Guidance is composed of 5 chapters and 83 rules and is a continuation to the first draft letter released in October 2018 and an updated
draft version from September 2020. The Guidance will be officially in effect starting from February 1, 2020. The Guidance will standardize and
improve important areas of online insurance business and operations such as licensing and consumer rights. While this does not come as a
surprise for those in the industry, players have had to make changes in anticipation of these new rules. A few key points include:
— Those that can engage in online insurance business are limited to “insurance institutions.” These institutions can be either insurance
companies or insurance intermediary institutions. More specifically, these intermediaries can be insurance brokers or assessors and
essentially comprise brokerage companies, bank-affiliated agencies and tech companies that have the license to operate insurance
brokerage businesses (all non-individuals).
— On qualifications, online insurance companies must be licensed. They need strong compliant management, scenario/traffic
advantages, IT capabilities, etc. Online insurance business must have independent operations. The online insurance business also
cannot be offloaded to a third-party, and they need to strengthen consumer rights protections by building effective after-sale service
and responsive mechanisms.
— The Guidance stipulates that “self-operated network platforms” are those that are established and owned by insurance companies
themselves, and the only type of insurance institution that can engage in online insurance business are self-operated network
platforms. These self-operated network platforms can either be set up as websites or mobile apps, but must obtain an index number
through the internet regulator’s rules on internet information services.
— On marketing activities, the Guidance also lays out strict rules aimed at standardizing content used for outreach such as needing to
include the company’s name, index number, etc. on the cover of the materials. All marketing materials need to also be created by the
qualifying insurance institutions themselves.
Source: News run
Greater China FinTech Sector News 5

China to Adopt ‘Positive and Prudent' Approach Towards Tech and Fintech Sectors Surrounding Monopolistic Behavior
Highlight:
China will adopt a “positive and prudent” approach towards the rapid growth of its financial technology industry and will watch over “too big to
fail” cases in the sector, according to Guo Shuqing, Head of CBIRC, who spoke at the Singapore Fintech Festival held on Dec 7-11. “Some
big techs operate cross-sector business with financial and technology activities under one roof…It is necessary to closely follow the spillover
of those complicated risks and take timely and targeted measures to prevent new systematic risks.“ Surrounding this are a number of recent
fines that the China Anti-trust regulator imposed on large tech companies for “monopolistic behavior.”
China wants to also strengthen its oversight of the sector and has drafted rules that apply to micro-lending and anti-monopoly behavior that
will impact many of the companies currently involved in the industry. “The future of data ownership was another key area of concern for the
government” Guo further expressed. In the talk he also called for deeper antitrust oversight of fintech firms and enhancing cyber security as
90% of banking transactions have moved online. "Fintech is a winner-take-all industry," he said. "With advantage of data monopoly, big tech
firms tend to hinder fair competition and seek excessive profits."
Cross-border Payments is on the Horizon for the Digital Yuan

Asiatimes, SCMP (Dec 2020)
Highlight:
The PBOC and HKMA are in preliminary stages of pilot testing for the digital yuan for cross-border payments.
China is leading globally in development of a Digital Currency Electronic Payment (DCEP), with digital RMB pilots processing $300 million in
transaction volume as of early November. The first pilot projects were launched in four major cities in April before expanding to nine
metropolitan areas. The most recent of these events was held in Suzhou for the national Double Twelve shopping event, for which the local
government handed out RMB20mm in digital red packets/
HKMA Chief Executive Eddie Yue mentioned in a statement that the cross-border payments project has already entered the second stage,
which looks at the operability and scalability of cross-border currency participation. Yue also mentioned that this fits into the long-term goal of
creating an integrated regional cross-border payment platform with HK as a key component.
Source: News run

Singapore Accounted for Approximately 42% of ASEAN FinTech Financing in 9M2020

Lianhe Zaobao (Early Dec 2020)
Highlight:
95 financings were completed by fintech companies in ASEAN in 9M2020, roughly 2/3 of which were by Singapore-based companies
representing approximately 42% of the total financing volume. This is a strong testament to the continued interest by fintech investors in the
region.
As traditional financial institutions are continually looking for innovation and transformation, Singapore’s fintech space has grown rapidly over
the last five years turning it into the fintech center for Southeast Asia. Between 2015 and 2019, financing amount raised in Singapore was c.
US$2.5bn, approximately 65% of Southeast Market, exceeding India, Philippines and Thailand, among others.
Based on the number of fintech companies, 2018 and 2019 grew 30% and 19% respectively, and 2% this year so far. There are currently
~1,200 fintech companeis in Singapore, the most within the ASEAN region.
According to a study by UOB, PwC and Singapore Financial Association, the financing raised in Singapore this year was also quite diversified,
with replacement borrowing, payments, and banking technology accounting for 30%, 24% and 21% of financing volume respectively.
China’s P2P Platforms in Operation Reach Zero Following Complete Restructuring

Asiatimes, Mingbao (30-Nov 2020)
On ground zero for fintech regulation, the central government announced that as of mid-Nov the number of P2P lending platforms had been
reduced to zero. Over the last 14 years, over 10,000 P2P platforms have entered the market cumulatively. At its peak in 2017, there were
over 5,900 platforms in operation with RMB3tn in annual origination volume.
China’s fintech sector has been experiencing increased regulatory tightening over the last few months with new regulation released on
through multiple verticals. Head of CBIRC Guo Shuqing emphasized recently the impact that technology has had on developing financial
services industry, but also the introduction of challenges and worthwhile lessons learned in terms of legal framework and risk appetite.
Other regulation has been impacting verticals such as third-party payments, where client money stored in platforms needs to pass through
PBOC and require appropriate fund / asset management license for any relevant business. Companies engaged in micro lending business
also need to adhere to more stringent leverage and capital requirements, to mention a few.
Source: News run

Under the Umbrella of “De-financialization,” Companies are Putting Greater Emphasis on the Means rather than the Applications
Highlight:
In light of increasing regulatory scrutiny and guidance on online lending companies, companies such as 360 Data (formerly 360 Finance) and
Xiaomi are strengthening positioning and value add as tech companies that help enable financial scenarios. Internet finance and fintech
companies still recognize benefit gleaned from financial services through means such as loan facilitation, financial data, etc., but continue to
segregate the role and essence of financial services within their core businesses.
In a statement made by Xiaomi in October to Financial Times, it will continue to focus on three core items relating to financial services in the
near-term: 1) using data and technology to serve financial service needs of SMEs 2) facilitating transformation of financial institutions
technology; and 3) serving retail consumers’ demand for financial products.
As the real economy continues to evolve within China and more companies are on the track of digitalization, the demand for and integration of
financial will continue to strengthen as well. What the sector knew as fintech platforms may shift into companies that enable the digitalization
of industry players within China, operating within certain financial scenarios in the process.
CBIRC and PBOC Jointly Publish <Draft Guidance on Online Micro Lending Business>
Sina (3, 4-Nov-2020)
Highlight: The CBIRC and PBOC and jointly published draft guidance on online micro lending business, which provided some limitations for
companies engaged in this business such as loan size, funding requirements, registered capital, etc. For example:
— Lenders that provide funding using a co-lending funding model cannot provide lower than 30% of the initial funding
— Maximum loan size should not exceed RMB300k or 1/3 of the borrower’s average revenue in the last three years, whichever is lower.
For corporate loans, the maximum size should not exceed RMB1m
— New registered capital requirements have also been introduced. For example, intra-provincial businesses must have registered capital
of at least RMB1bn, while cross-provincial business, should be at least RMB5bn. These must be a one-time injection
— Last two accounting years need to be profitable with cumulative retained earnings of at least RMB12m (consolidated basis), and the
company’s amount lent in the last year cannot exceed 35% of net assets
— For funding activities, micro loan companies cannot have an outstanding balance of non-standard financing products (interbank
borrowing, shareholder loans, etc.) of greater than 1x their net assets, whereas the outstanding balance of standard financing products
(bonds, ABS etc.) cannot exceed 4x net assets
Source: News run

B. Earnings Update
3Q 2020 Earnings Updates
Lending
Company Business / Operating Financial Asset Quality Others

Retail Credit Facilitation
 Outstanding balance of loans facilitated was RMB  Flow rates¹ for general
535.8bn as of 3Q2020, up 21.4% YoY unsecured loans that are
 Cumulative borrowers was ~14mm as of 3Q2020, delinquent for 1-89 days were
up 16.7% YoY 0.5% in Sep 2020, compared to
1.0% in Feb 2020
 New loans facilitated was RMB 147.8bn in  Flow rates¹ for general secured
3Q2020, up 7.7% YoY loans that are delinquent for 1-89
 Outlook: For the full year of
 Retail credit facilitation take rate was 9.4% in days were 0.1% in Sep 2020,
compared to 0.7% in Feb 2020 2020, the Company expects
3Q2020
 DPD 30+² delinquency rate new loan sales to be in the
Wealth Management  Total income was RMB range of RMB 558bn to RMB
13.1bn in 3Q2020, up 10.5% — 2.5% for general 568bn, year-end client assets
 Total number of registered users was 45mm as of
YoY unsecured loans as of to be in the range of RMB
3Q2020
— Technology platform- 3Q2020, compared to 395bn to RMB 420bn, total
 Total number of active investors was 13mm as of 3.3% as of 2Q2020 income to be in the range of
3Q2020 based income was
RMB 9.9bn in 3Q2020, RMB 51.0bn to RMB 51.5bn,
— 0.9% for general secured
 Total client assets (“CA”) were RMB 378.3bn as down 6.9% YoY and non-IFRS adjusted net
(Announced on loans as of 3Q2020,
of 3Q2020, up 7.8% YoY profit, which excludes the
02-Dec-2020) compared to 1.4% as of
— CA in current products increased by 61.6%  Net profit was RMB 2.2bn in non-recurring C-round
2Q2020
YoY to RMB 346.0bn 3Q2020, down 36.8% YoY  DPD 90+ delinquency rate convertible notes
restructuring expense, to be
— As of 3Q2020, legacy products accounted for — 1.5% for general in the range of RMB 13.2bn
8.5% of total CA, down from 39.0% a year unsecured loans as of to RMB 13.4bn
ago 3Q2020, compared to
 Take rate for current products was 36.6bps 2.1% as of 2Q2020
 12-month investor retention rate as of 3Q2020 — 0.5% for general secured
was 95.2% loans as of 3Q2020,
 Contribution to total CA from customers with compared to 0.9% as of
investments of more than RMB 300k increased to 2Q2020
77.5%
Source: Company filings

¹ Flow rate estimates the percentage of current loans that will become non-performing at the end of three months, and is defined as the product of (i) the loan balance that is overdue from 1 to 29 days as
a percentage of the total current loan balance of the previous month, (ii) the loan balance that is overdue from 30 to 59 days as a percentage of the loan balance that was overdue from 1 to 29 days in
the previous month, and (iii) the loan balance that is overdue from 60 to 89 days as a percentage of the loan balance that was overdue from 30 days to 59 days in the previous month.
² DPD 30+ delinquency rate refers to the outstanding balance of loans for which any payment is 30 to 179 calendar days past due divided by the outstanding balance of loans.
Lending
Wealth Management
 Number of active WM investors was 77k as of  As of 3Q2020, the delinquency
3Q2020, up 152.4% QoQ rates for loans that are past
 Cumulative number of investors was 2.3mm as due for 15-29 days, 30-59
of 3Q2020, up 2.7% QoQ days and 60-89days were
 Sales volume of WM products was RMB 4.6bn 1.1%, 1.7%, and 1.6%,
in 3Q2020, up 110.1% QoQ  Total net revenue respectively compared to
 Total asset under administration (“AUA”) for — RMB 1,023mm in 3Q2020, down by 1.4%, 2.0%, and 2.1%, as of
WM products was RMB 4.3bn as of 3Q2020, 50.3% YoY 2Q2020
up 71.4% QoQ — Revenue from Yiren Credit decreased to  Cumulative M3+ net charge-off
Consumer Credit RMB 742mm, down 51.1% YoY rate as of 3Q2020  NA
 Borrowers served in 3Q2020 was 143k, up — Revenue from Yiren Wealth decreased to — For loans originated
(Announced on 33.2% QoQ RMB 281mm, down 48.0% YoY in2017 was 17.0%, vs.
26-Nov-2020)  Cumulative number of borrowers was 5.1mm  Net income was RMB 80mm in 3Q2020, down 16.7% as of 2Q2020.
as of 3Q2020, up 2.9% QoQ 65.0% YoY — For loans originated in
 Total loan originations reached RMB 3.2bn in 2018 was 18.3%, vs.
3Q2020, up 33.5% QoQ but down compared 17.6% as of 2Q2020
to RMB 10.5bn in same period in 2019 — For loans originated in
 Total outstanding principal amount of the 2019 was 11.9%, vs.
performing loans was RMB 28.0bn, down 9.4% as of 2Q2020
16.3% QoQ
 Management outlook:
 Total operating revenue — The Company expects total
 Number of active users: 7.4mm as of 3Q2020, — RMB 3,154m total revenue in 3Q, down 1 loan origination guidance for
up 21% on a YoY basis % on a YoY basis fiscal year 2020 to be
 90 day+ delinquency rate was
 Total outstanding loan balance reached RMB — Online direct sales and services income between RMB 170bn and
2.60% as of 30-Sep-2020,
61.9bn as of 3Q2020, up 52.4% from 3Q2019 was RMB 516mm in 3Q, down 50% YoY RMB 180bn
down from 2.99% as of 30-
 Total loan origination was RMB 41.1bn in — Credit-oriented services income was RMB  LexinFintech share purchase plan
Jun-2020
3Q2020, up 57.8% on a YoY basis 2,025mm in 3Q, up 6% YoY continues to progress, with 1.85m
 Vintage M6+ charge-off rates
(Announced on  Average loan tenure of 11.4 months — Platform-based services income was shares purchased worth $12.9m
remained stable at ~4.5%
24-Nov-2020)  Profit sharing model represents approximately RMB 614mm in 3Q, up 159% YoY as of 14-Sep-2020; these
39.4% of total loan originations  Net profit purchases represent part of the
— RMB 345mm in 3Q, down 52% YoY $20m that management intends
to purchase

¹ Loans that are delinquent for 180 days or more are typically charged-off and are not included in the delinquency rate calculation.
Lending
 Percentage of funding from financial institutions

in 3Q2020 was 99%
 Total loan origination volume was RMB 66.0bn,
up 17.9% YoY
 Outlook: the Company would
— Loan origination volume under capital-light
 Total net revenue like to raise its total loan
model was RMB 16.9bn, up 48.7% YoY  90 day+ delinquency rate of
— RMB 3.7bn in 3Q2020, up origination volume target for
 Total outstanding loan balance was RMB 1.96% compared to 2.82% in
43.4% YoY fiscal year 2020 to the range
84.2bn, up 19.3% YoY the previous quarter
 Net profit of RMB 242bn to RMB
— Outstanding loan balance under capital-  Vintage M6+ charge-off rate of
— RMB 1.2bn in 3Q2020, up 244bn, from previous
(Announced on light model was RMB 21.5bn, up 97.2% ~1.3% - ~2.3%
67.9% YoY guidance of RMB 200bn to
19-Nov-2020) YoY
RMB 220bn
 Cumulative borrowers was 18.7mm as of
3Q2020, up 27.0% YoY
 Weighted average loan tenure of 8.40 months
in 3Q2020
 Management outlook
— The Company expects
its loan origination
 Number of unique borrowers  Total revenue volume in the fourth
— 1.9m in 3Q2020, down ~46% on a YoY — RMB1,793mm in 3Q2020, quarter of 2020 to be in
basis and up ~19% on a QoQ basis up 13% on a YoY basis and  30+ delinquency rate: 4.9% the range of RMB18bn to
down 1% on a QoQ basis RMB20bn
 Loan volume
 Net profit  30-day+ vintage delinquency  Changes in Management
— RMB 13.1bn in 3Q2020, down 31% on a rate of ~5.5% - 8.0%¹
(Announced on YoY basis and up 30% on a QoQ basis — RMB 597mm in 3Q2020, flat — The Board approved Mr.
17-Nov-2020) relative to 3Q2019 and up Jiayuan Xu as the
 Average loan tenure of 8.3 months 31% on a QoQ basis company’s new CFO on
Dec 1, 2020 to replace
Mr. Simon Ho, who will
join the Board
Source: Company filings ¹ Loans that are delinquent for 180 days or more are typically charged-off and are not included in the delinquency rate calculation.
Online Brokerage
Company Business / Operating Financial Client Assets Other
 Mr. Lei Huang was approved by

the board of the Company to
 Total revenue was US$ 38.0mm in serve as a director of the
 Total client account Company, effective on November
 Trading volume was US$ 62.8bn in 3Q2020, up 148.2% YoY
balance increased to 23, 2020
3Q2020, increasing by 143.8% YoY  Commissions were US$ 19.5mm, up US$ 10.9bn as of
 Total number of customer accounts 211.9% YoY 3Q2020, up 188.1% YoY  Mr. Vincent Chun Hung Cheung
was 976k in 3Q2020, increasing by  Operating income was US$ 7.4mm in  Total margin financing has tendered his resignation as a
60.8% YoY 3Q2020, compared operating loss of and securities lending director of the Company for
(Announced on US$1.3mm in 3Q2019 balance of US$ 2.0bn as personal reasons and his
 Customer deposit accounts was 215k resignation was effective on
25-Nov-2020) of 3Q2020, up 109.4%
in 3Q2020, increasing by 110.7% YoY  Net profit was US$ 4.9mm, compared net November 23, 2020. He remains
YoY
loss of US$ 1.4mm in 3Q2019 CEO and Director of our
subsidiary Tiger Brokers (NZ)
Limited
 Total trading volume was HKD

1,014.7bn in 3Q2020
— Trading volume for US stocks was
HKD 564.5bn in 3Q2020  Total client assets  08-Dec-2020: Futu announced
— Trading volume for HK stocks was that a leading global investment
 Total revenue increased 177.8% YoY to
HKD 436.2bn in 3Q2020 firm has agreed to purchase
— HKD 946mm in 3Q2020, up 272.1% HKD 200.9bn
— Trading volume for Stock Connect approximately 50,000,000 Class
on a YoY basis  Daily average revenue
was HKD 14.0bn in 3Q2020 A ordinary shares of the
trades (DARTs)
 Net profit Company in the form of prepaid
 Number of paying clients and client
(Announced on — HKD 402mm in 3Q2020, up 18 times — 379,008 in 3Q, up warrants for an aggregate
retention rate
19-Nov-2020) on a YoY basis 273.1% on a YoY purchase price of approximately
— Number of paying clients
increased by 136.5% on a YoY basis US$260,000,000
basis to 418,089
— Quarterly client retention rate was
98.0% in 3Q2020

Auto Finance

 Total revenue increased on a YoY
basis from the Covid-19 impact with
increased contribution from after-
market services and auto trading
 Number of dealers increased in 3Q due  Management guidance was
— Total revenue increased 24% YoY overwhelmingly positive
to expansion of 4S dealers and higher to RMB435mm and 59% on a
quality dealers in lower-tier city dealers QoQ basis — Revenue guidance of
following improvements in 4S sales  30+ ratio of 1.11%, down from
RMB700-750mm for
team and dealer network optimization — After-market services facilitation 1.59% at the end of Jun 2020,
4Q2020
revenues increased to RMB69mm roughly in line with 0.85% at the
— 46,248 as of Sep 30, 2020, up from in 1Q2020, up 69% YoY end of Dec 2019  In 3Q Cango recognized a
44,521 as of Jun 31, 2020 large gain (~RMB1.8bn) on
— Auto trading income recognized of
 Loan facilitation volume increased in 3Q  90+ ratio of 0.53%, down from the shares it held in Li Auto,
RMB70m in 3Q2020, which completed its Nasdaq
(Announced on on a YoY basis primarily because of the 0.84% at the end of Jun 2020 and
approximately 15% of total IPO on July 30, 2020 and a
23-Nov-2020) Covid-19 impact roughly in line with 0.40% at the
revenue subsequent follow-on in
end of Dec 2019
— Facilitation volume of RMB7,496m  Operating income of RMB122m in December 2020. The
in 3Q2020, up 30% YoY and 52% 3Q2020, up 50% YoY Company holds 39.2m class
QoQ A shares of Li Auto
 Net income was boosted by
investment gain on Li Auto stake
— Net income of 1,769m in 3Q2020
vs. RMB122mm in 3Q2019

InsurTech
Company Business / Operating Financial Others
 Total Gross Written Premiums (“GWP”) was

RMB 779mm in 3Q2020, up 41.2% YoY  Management outlook:
 Total operating revenue
 GWP of long-term life and health insurance — RMB 349mm in 3Q2020, which increased — Based on the Company’s preliminary
products accounted for 92.9% of total GWP by 22.9% YoY assessment of the current market
facilitated in 3Q2020, compared to 87.5% in conditions, the Company currently expects
the 3Q2019  Net profits total operating revenue for the fourth
(Announced on quarter of 2020 to be in the range of RMB
19-Nov-2020)  Number of insured clients increased to — Net profit was RMB 14.7mm in 3Q2020
330mm to RMB 350mm
56.0mm as of 3Q2020

FinTech SaaS
Company Business / Operating Financial Others
 Retail loans processed decreased YoY,  Total revenue performed strongly in the third quarter
reaching RMB19.5bn vs. RMB 32.7bn in mainly driven by growth in Ping An Group revenue and
the same period last year operating support revenue
 SME loans processed increased YoY, — Total revenue of RMB881mm in 3Q, up 50.7% on
reaching RMB14.7bn in 3Q2020 vs. a YoY basis
RMB9.2bn in the same period last year — Ping An revenue of RMB491mm in 3Q, up 105%
 Number of fast claims showed steady on a YoY basis
growth YoY, reaching 1.6in 3Q2020 vs. — Third-party customer revenue grew to RMB
1.5m in 3Q2019 302mm, up 3.9% on a YoY basis
 More business diversification to address — Operation support revenue grew to RMB314m in  OneConnect priced a $370m (post-shoe) US registered follow-on
new needs: 3Q, up 126% YoY; represents 36% of total on Aug 12
— Revenue contribution from revenue
(Announced on operation support solutions  Gross margin showed improvement in 3Q
03-Nov-2020) increased to 36% in 3Q2020 from — IFRS gross margin grew to 42.7% from 38.6% in
24% in 3Q2019 on the back of the same period last year
strong growth in AI customer — Non-IFRS gross margin of 51.2%1
service  Operating loss margin decreased YoY to 28.4% in
— Cloud services platform launched in 3Q2020 vs. 52.2% in the same period last year
the end of 2Q2020, accounting for  Net loss improved in 3Q to RMB243mm compared to
11% of total revenue in 3Q2020 RMB286mm in the previous year

C. Company News
Latest Company News (1/8)
JD.com Teams up with China Merchants Bank to Launch Digital Online Lender
ChinaBankingNews (14-Dec-2020)
Highlight:
E-commerce giant JD.com and China Merchants Bank (CMB) are teaming up to launch a new digital bank in the Chinese
financial hub of Shanghai.
CMB announced on 11 December that it had obtained approval from the China Banking and Insurance Regulatory Commission
(CBIRC) to establish Zhaoshang Tapu Bank (招商拓扑银行) – an online direct bank, in Shanghai.
CMB will hold a 70% stake in Zhaoshang Tapu while Wangyin Online – a wholly owned subsidiary of JD.com’s fintech vehicle
JDD, will hold a 30% stake.
The approval comes nearly three years after CBIRC approved the establishment of China’s first direct bank in January 2017 –
CITIC aiBank, which was originally a joint venture between Baidu and China CITIC Bank.
MAS Announces Successful Applicants of Licences to Operate New Digital Banks in Singapore
MAS (4-Dec-2020)
Highlight:
The Monetary Authority of Singapore (MAS) announced four successful digital bank applicants.
The applicants selected for the award of banking licences to operate digital banks are as follows:
Digital Full Bank (DFB)
• A consortium comprising Grab Holding Inc. and Singapore Telecommunications Ltd.
• An entity wholly-owned by Sea Ltd.
Digital Wholesale Bank (DWB)
• A consortium comprising Greenland Financial Holdings Group Co. Ltd, Linklogis Hong Kong Ltd, and Beijing Co-operative
Equity Investment Fund Management Co. Ltd.
• An entity wholly-owned by Ant Group Co. Ltd.
Source: Public information

Us Payments Fintech Stripe Eyes Asia Expansion With Rapid Hiring Spree
Electronic Payments International (10-Dec-2020)
Highlight:
US-based digital payments company Stripe is reportedly planning to embark on Asia expansion after increasing its total number
of employees in the region by 40% this year.
Stripe aims to expand in Southeast Asia, Japan, China, and India markets after hiring over 200 people in the region, Reuters
reported.
Stripe APAC business head Noah Pepper said that the company was rapidly adding engineers to its workforce.
HKT Launches Flexi Flash Instant Fund Transfer Service with Tap & Go
telecompaper (09-Dec-2020)
Highlight:
Hong Kong operator HKT Flexi and HKT Payment have jointly launched the Flexi Flash service to enable users to manage their
cash flows. The Flexi Flash service allows customers to obtain instant funds through the HKT Flexi App anytime, anywhere.
Upon successful application and approval, the customer’s Tap & Go mobile wallet will be topped up with the approved funds for
immediate access.
To access Flexi Flash, customers can download the HKT Flexi App and Tap & Go App, sign up and complete authentication for
both their Flexi account and their Tap & Go account respectively. Upon successful authentication, customers can select Flexi
Flash on the HKT Flexi App and apply for a loan, without the need to show proof of income. Customers will be instantly notified
of the application result. If the application is approved, funds will be transferred to the customer’s Tap & Go authenticated
account. Repayments will be spread over 12 months and automatically debited from customer’s designated bank account.

Peak to Acquire Banking AI Software Company Zhongke Software Intelligence Ltd.

Nasdaq (09-Dec-2020)
Highlight:
Peak Fintech Group Inc. (CSE: PKK) (OTCQX: PKKFF) ("Peak" or the "Company"), an innovative Fintech service provider to
the Chinese commercial lending sector, today announced that it has signed a memorandum of understanding (MOU) to acquire
banking artificial intelligence software company Zhongke Software Intelligence Ltd. ("Zhongke").
Zhongke develops analytics and AI software used by banks and financial institutions in China to make decisions on loan and
credit applications, as well as to process and to manage the applications. Zhongke is also a strategic partner of China UnionPay.
Operating under the approval of the People's Bank of China (China's central bank), State-owned UnionPay is China's largest
POS electronic funds transfer network and the only interbank network in China that links all the automatic teller machines
(ATMs) of all banks throughout the country.
Medical SaaS Provider LinkedCare Raises USD15.1 Mln in Series-B Funding to Enter International Markets
YicaiGlobal (08-Dec-2020)
Highlight:
Medical 'Software as a service' (SaaS) provider Shanghai LinkedCare Information Technology Co. completed its series-B
funding of CNY100 million (USD15.1 million) led by a holding subsidiary of Shanghai Fosun Pharmaceutical (Group) Co.
[HKG:2196], online media outlet Jiemian.com reported. The funds raised will help the company start its internationalization
strategy, while expanding its consumable supply chain, the firm said.
LinkedCare will also use the funds to increase investment in product and service innovation. Positioned as an information
service provider in the field of medical consumption, LinkedCare is focusing on providing e-dental and e-aesthetic medical
intelligent management system for oral and aesthetic medicine institutions.

GFI Announces New Joint Venture in China

PRNewswire (07-Dec-2020)
Highlight:
GFI Asia Partners Pte. Ltd ("GFI"), a subsidiary of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage and
financial technology company, announced today that it took a majority stake in a newly established joint venture company in
China, GFIGS Commercial Consulting (Shanghai) Co., Ltd ("GFIGS"), offering OTC derivatives brokerage service.
GFI's joint venture partner, Guizhou Big Data Capital Service Centre Co., Ltd. ("Guizhou Big Data Capital"), is a modern service
enterprise whose main business direction is data commercialization and capitalization for both the information and financial
services industry.
GFIGS will be registered and headquartered in Shanghai and will initially provide services in Iron Ore derivatives, building on
GFI's reputation as a leader and pioneer in Iron Ore derivatives markets, with the aim to expand to other products. This new joint
venture presents an exciting opportunity for GFI's further growth and development in China. GFI looks forward to a long and
successful partnership with Guizhou Big Data Capital.
China Construction Bank’s Blockchain Bond Efforts Take a New Direction

Investing.com (05-Dec-2020)
Highlight:
China Construction Bank (OTC:CICHF), the world’s second-largest bank by assets, is cooperating with Malaysian and
Singaporean partners to test blockchain technology for use in the bond market.
As previously reported, China Construction Bank’s branch in Labuan, Malaysia, had initially pursued a partnership with a
Labuan-based fintech firm to issue what was hailed as prospectively the first-ever blockchain-based digital security to be issued
by a Chinese financial institution.

China’s Ant Considers Paytm Stake Sale

CNBC (02-Dec-2020)
Highlight:
Chinese fintech giant Ant Group is considering selling its 30% stake in Indian digital payment processor Paytm amid tensions
between the two Asian neighbors and a toughening competitive landscape, people with direct knowledge of the matter said.
Financial details of the possible transaction have not been firmed up and Ant, the Alibaba-backed payments-to-consumer credit
behemoth, has not launched a formal sale process yet, four people told Reuters.
Paytm, which is also backed by SoftBank Group Corp among others, was valued at about $16 billion during its latest private
fundraising round a year ago. At that valuation, Ant’s stake in the Indian firm is worth about $4.8 billion.
Ant Group Grabs Approval for over $3 Billion in ABS Financing for Huabei and Jiebei Platforms
China Banking News (25-Nov-2020)
Highlight:
hinese fintech giant Ant Group has just secured approval for 20 billion yuan (approx. USD$3.04 billion) in asset-backed security
(ABS) financing.
Two ABS financing projects for Ant Group’s Huabei (花呗) and Jiebei (借呗) platforms have both obtained approval from
regulators, according to a public announcement made via the Shanghai Stock Exchange’s (SSE) Corporate Bond Project
Information Platform.
The total value of the approved ABS financing projects is 20 billion yuan.
Three more asset-backed financing plans associated with the Huabei and Jiebei platforms are also currently under review by
Chinese regulators, and have a total value of 26 billion yuan.

OneConnect Launches "Linked Port" in China's Greater Bay Area

PRNewswire (30-Nov-2020)
Highlight:
OneConnect Financial Technology Co., Ltd. ("OneConnect" or the "Company") (NYSE: OCFT), an associate of the Ping An
Group, and China Merchants Group recently launched the Guangdong-Hong Kong-Macao Greater Bay Area Port Logistics and
Trade Facilitation Blockchain Platform Project for the ports Shekou and Shunde.
The "linked port" technology ecosystem for the two ports is the first step to ultimately improve cross-border trade efficiency
across the whole Greater Bay Area, one of the world's largest port zones. With increasing container throughput and cross-
border trade, it is vital for the Greater Bay Area to integrate its 37 ports to remain competitive.
The technology project is part of the new infrastructure plan promoted by the Shenzhen municipal government and other
governmental departments.
Huatai Securities and Bloomberg Establish Global Strategic Collaboration

Hubbis (25-Nov-2020)
Highlight:
Harnessing Huatai Securities’ financial services expertise and Bloomberg’s global technology experience, the two companies
will collaborate on financial technology, market-making services, index product development and risk management, among other
areas, to further support Huatai Securities’ technological transformation and international business expansion, the firms said in a
press release.
Yi Zhou, CEO, Huatai Securities, said: “Technology adoption at global financial institutions over the past year has continued to
accelerate, and Huatai Securities is keeping pace. Our investments in the digitisation and transformation of our business through
big data, artificial intelligence and cloud computing have enabled us to develop a robust financial services ecosystem. By
working with Bloomberg, we will be able to benefit from their technology innovation and decades of experience in financial
information services, enterprise solutions and risk assessment. This important collaboration will facilitate Huatai Securities’
digital transformation, strengthen our global competitiveness and accelerate the firm’s international development.”

Bytedance Expands Search Ads, Kuaishou Obtains Payment License

China Money Network (25-Nov-2020)
Highlight:
Kuaishou has acquired a licensed payment institution Easylink Payment, thereby indirectly obtaining a payment license. People
familiar with the matter revealed that Kuaishou used cash + stocks to conduct mergers and acquisitions of Easylink.
The cash was around RMB300 million, and the amount and value of the stocks were unknown. After the completion of the
acquisition, Kuaishou will hold more than 50% of the shares and become the largest controlling shareholder of Easylink.
The person familiar with the matter also revealed that the two parties have completed a commercial merger agreement in the
near future, and are debugging the payment interface, so that the business of both parties can run it.
Yeahka Acquires 42.5% Equity Interest in Chuangxinzhong to Further Expand Its Marketing Services
PRNewswire (09-Nov-2020)
Highlight:
YEAHKA LIMITED ("Yeahka" or the "Company", stock code: 9923.HK), a leading technology platform in China, announced an
agreement to acquire a 42.5% stake in Beijing Chuangxinzhong Technology Co., Ltd. ("Chuangxinzhong") for RMB 170 million
in cash.
Chuangxinzhong is a leading content performance marketing service provider in China. It provides accurate content delivery
through audience analysis based on big data, while providing advertisers with overall performance marketing strategies,
creativity, performance monitoring and optimization services. Chuangxinzhong has accumulated a large advertiser base in the
fields of Internet insurance, online education and e-commerce, creates unique content through multiple formats, including short
form videos, and optimizes distribution of that content through leading online media platforms, such as Tencent and Tik Tok.
Chuangxinzhong is also a core service provider for Tencent, ranking first among Tencent's new service providers in terms of
consumption in the first half of 2020.

JD.com Becomes China’s First Mall to Test Digital Yuan

DBS (07-Nov-2020)
Highlight:
JD.com Inc, China’s second biggest online retailer, will become the country’s first virtual mall to use digital yuan, the
cryptocurrency backed by the central bank.
JD Digits, the e-Commerce giant’s fintech affiliate, will launch a pilot programme this month, and customers will pay for certain
items with digital yuan, it said on its official WeChat account. About 100,000 digital cash vouchers, worth CNY20m in total, will
be issued to residents of Suzhou city in the eastern province of Jiangsu on 11 December.
The digital yuan has been used in more than four million transactions, worth a total of about CNY2b (USD306m), as of early last
month, according to People’s Bank of China (PBOC) Governor Yi Gang. The central bank kicked off tests for the online renminbi
in some cities in April to bolster its status as a global currency and to help control the domestic economy as it rapidly goes
digital.

D. Upcoming FinTech Conferences in Asia
Goldman Sachs Asia Financials & Fintech
Virtual Corporate Day
Wed Jan 6 - Thu Jan 7, 2021
Goldman Sachs cordially invites you to

Asia Financials & Fintech Virtual Corporate Day
Confirmed companies below (more to follow):
Hong Kong / Mainland China Japan

 360Finance (QFIN.US)  Japan Exchange (8697.T)
 AIA (1299.HK)
 BOC HK (2388.HK)
 Lakala Payment (300773.SZ) Korea
 LexinFintech (LX.US)  Hana Financial Group (086790.KS)
 New World Development (0017.HK)  KB Financial Group (105560.KS)
 Prudential (2378.HK)  NHN KCP (060250.KQ)
 Sino Land (0083.HK)  Shinhan Financial Group (055550.KS)
 WeLab (Private)  Woori Financial Group (316140.KS)
ASEAN Taiwan
 Dana (Private)  Cathay Financial (2882.TW)
 DBS (DBSM.SI)  Chailease (5871.TW)
 Singapore Exchange (SGXL.SI)  Fubon Financial (2881.TW)
 United Overseas Bank (UOBH.SI)

Goldman Sachs Technology and Internet
Conference 2021
We cordially invite you to register for the Goldman Sachs Technology and Internet Conference 2021 to be held on Tuesday,
January 12, 2021 and Wednesday, February 10 - Thursday, February 11, 2021.
To ensure the health and safety of our clients and guests and accommodate company and investor schedules, the conference will be
held virtually this year across January and February.
Virtual Conference Details

Technology and Internet Conference 2021
Tuesday, January 12, 2021 and Wednesday, February 10 - Thursday, February 11, 2021
The virtual conference will be hosted through the Goldman Sachs Research Portal. Please click on the link in advance to make
sure you have access to the Research Portal. If you experience any issues, please reach out to your Goldman Sachs
Representative. Access must be confirmed in advance of the conference to ensure you will be able to view the conference.
Virtual one-on-one meetings will be available. Please submit your one-on-one requests to your Goldman Sachs Representative
by Wednesday, December 16 for the January 12 conference date and Thursday, January 7 for the February 10-11 conference
dates. Once you register online, we encourage you to return to the site regularly for up-to-date agenda information.
We look forward to continuing our discussions with you.

Goldman Sachs Global Macro Conference Asia
Pacific

Upcoming FinTech Conferences in Asia
Time/Venue Highlight
January 6-7, 2021

Asia Financials & Fintech Virtual Corporate Day
Virtual
January 12, February 11-12, 2021

Tech & Internet Conference
Virtual
January 27-28, 2021

Goldman Sachs Global Macro Conference - Asia Pacific 2021
Virtual
The world’s largest gathering for insurance innovation and transformation, InsureTech
Connect, is coming to Asia. InsureTech Connect Asia (ITC Asia) will bring together more
February 2-4, 2021
than 1500 insurance industry leaders, investors and entrepreneurs from across the Asia-
Singapore
Pacific region. The conference will also feature over 150 C-suite speakers, 50+ sessions,
100+ exhibitors and dedicated networking opportunities for groups and 1:1 meetings
Over the course of 2 days, 150+ senior executives from leading financial institutions will
February 3-4, 2021
gather to discuss current AI success, how you can leverage new tools, and when and
Virtual
where to use them for best effect
Sibos is the world’s premier financial services event organised by SWIFT. The annual
conference and exhibition connects more than 8,000 executives, decision-makers and
October 11-14, 2021
thought leaders from across the industry. Renowned speakers share leading insights
Singapore
featuring the world’s leading experts in banking, payments, securities services,
technology, FX and more

II. GS Research Commentaries
GS Research Commentary (1/2)
Asia FinTech Commentary
Topic Date Highlights
 Lufax Holding, a Ping An Group subsidiary, operates an offline-to-online integrated financial services platform in China. With
its capital-light and twin hub-and-spoke business model, Lufax mainly serves individual lending needs among small business
owners and provides personalized wealth management solutions to middle class and affluent consumers. As of end-June
2020, the platform connects 4.7mn/12.8mn active borrowers/investors to 54 banks/trustcos and 429 WM product providers,
with total Loan Balances of Rmb519bn and Client Assets of Rmb375bn, ranked #2 and #3 in retail lending and wealth
management respectively by non-traditional financial institutions.
Initiating Coverage
Nov 30, 2020
Report: Lufax Holding  Looking ahead, we expect Lufax's experienced management team to continue to lead business transformation and
innovation, and navigate through the continually evolving financial regulatory environment in China. We expect the company
to scale via its effective platform model and deliver 16%/24%/15%/26% 2020E-22E CAGRs in Loan Balances/Client
Assets/Revenue/Net Profit.
 Our 12-month target price for Lufax is US$20.0 per ADS, based on 18x 2022E earnings (see Exhibit 2 for details). With our
TP implying 34% upside, we initiate coverage at Buy.
 China is at the forefront of digital currency development and will likely be one of the first countries to issue a sovereign digital
currency (known as “DC/EP”). As a gradual replacement for physical cash, in the early stages DC/EP will facilitate small
payments for consumables such as meals, groceries and transport, but over time will expand to larger and more complex,
value-added services such as government subsidies and cross-border payments. Even in a cashless environment, DC/EP
will be an attractive alternative to fintech platforms given its anonymity, the ability to operate outside of wireless networks,
and interconnectivity among different payment methods. Successful adoption will ultimately require government promotion,
Digital Currency: which has the wherewithal to drive a rapid uptake.
Reinventing the Yuan Nov 17, 2020
for the Digital Age  In ten years we expect DC/EP to reach 1 billion addressable users, Rmb1.6tn in issuance, Rmb19tn in annual Total Payment
Value and account for 15% of total consumption payments. Incorporating digital currency wallets into bank apps will level the
playing field in the Rmb 3tn revenue pool for retail finance by bringing consumers back to bank channels, thereby expanding
their customer base and MAUs. This will likely slow the rate that banks have been ceding ground to fintech, and even
reverse market share losses over the long-term if DC/EP gains in popularity. In the meantime, PAB and CMB will benefit
most from DC/EP as they are best placed to commercialize returning app users thanks to their leading retail franchises,
premium client bases, superior fintech capability and strategic focus on retail finance.
Source: GS Research
GS Research Commentaries 32
GS Research Commentary (2/2)
Asia FinTech Commentary
Topic Date Highlights
 The financial authorities, the PBOC and CBIRC, have jointly issued a consultation paper to further tighten micro-lending
licensing and business growth. Given that most fintech companies rely on micro-lending licenses for loan origination, we
believe the new regulation will pose new challenges for the fintech lending sector. We expect investor questions will be
centered around: 1) what’s the change; 2) what’s the policy stance; and 3) what are the consequences?
China Financial Services:  Notably, the new regulation requires the special approval of cross-regional online lending by the financial regulators, not the
Assessing the new local governments, which is effectively a tightening measure given that financial regulators have the know-how needed to
consultation paper: Will Nov 3, 2020 regulate bank-like entities. Moreover, according to the consultation paper, capital-focused regulations will be applied to the
fintech firms be regulated co-lending business model, with financial data like revenue being the core input used to assess loan caps.
as bank-like entities?
 We believe these new regulations will result in another round of tightening aimed at cleaning up fintech firms that lack the
appropriate licenses, especially those without large platforms and those that have failed to obtain or renew the online micro-
lending license needed to continue cross-regional loan origination. We believe this could result in a slowdown of overall
fintech lending growth given measures requiring more risk sharing (30%) for the co-lending business model and with
regulators focusing on household leverage and debt service capacity.
Source: GS Research
GS Research Commentaries 33
III. Recent US Regulatory Developments Affecting Foreign US-Listed Issuers
Recent US Regulatory Developments Affecting
Foreign US-Listed Issuers (1/2)
SEC Guidance Highlights
 On November 23, the SEC’s Division of Corporation Finance issued guidance on disclosure / governance issues for
China-based issuers
 The letter guides investors to scrutinize issuers’ disclosure of PCAOB inspection limitations and risks relating to the quality
of the financial statements produced by foreign audit firms
 Some of the areas of disclosure suggested for scrutiny include:
“Disclosure — “The possibility that SEC proceedings against the audit firm that the issuer employs (whether in connection with an
Nov. 23 Considerations for audit of the issuer or other issuers operating in China) could result in the imposition of penalties against the audit firm,
China-Based Issuers” such as suspension of the auditor’s ability to practice before the SEC”
— “The possibility that legislative or other regulatory action in the United States may result in listing standards or other
requirements that, if the company cannot meet, may result in delisting and adversely affect the company’s liquidity or
the trading price of the company’s securities that are listed or traded in the United States”
 Other potential risks related to VIE structure, regulatory environment in China, and differing shareholder rights were also
mentioned in the guidance letter
 On November 24, the SEC published a statement after meeting with audit firms, and is expected to issue a notice of
proposed rulemaking next month
 SEC and the audit firms discussed the measures taken by the firms to promote audit quality in emerging markets,
including China, focused on:
“Statement on Third — factors considered by each firm in making client acceptance and client continuance decisions;
Meeting with Audit — the results of completed and ongoing internal inspections;
Firm Representatives
— training provided by each U.S. audit firm to local firm engagement teams in emerging markets; and
Regarding Audit
Nov. 24 Quality in Emerging — other observations on audit quality as calendar year-end companies approach their annual financial reporting season.
Markets and Recent  Chairman Clayton of the SEC has directed the SEC staff to prepare proposals for the Commission to consider in response
Developments” to the recommendations set forth in the Report on Protecting United States Investors from Significant Risks from Chinese
Companies, which includes recommendations that are designed to strengthen investor protections and improve the
integrity of US capital markets by:
— leveling the playing field for all companies listed on US exchanges; and
— improving disclosure regarding the risks inherent in investing in emerging markets, including China
Source: Public Source
Recent US Regulatory Developments Affecting Foreign US-Listed Issuers 35

Recent US Regulatory Developments Affecting
Foreign US-Listed Issuers (2/2)
SEC Guidance Highlights
 On Dec 2, a more stringent version of the Kennedy Bill was passed in the House of Representatives by
unanimous voice vote, after passing unanimously in the Senate earlier in May
 The bill is being passed to President Trump, after which it is expected to be signed into law
The Holding Foreign  The Kennedy Bill restricts securities of foreign companies from being listed on any U.S. exchange if they have
Dec. 2 Companies failed to comply with SEC / PCAOB auditing requirements for three consecutive years and imposes
Accountable Act (the heightened disclosure requirements around government ownership and affiliation. While it applies to listed
“Kennedy Bill”) companies from any country, various market commentators have suggested that the legislation’s sponsors
intended it to target Chinese companies listed in the United States
 Compared to the preceding version in May, certain key exemptions are no longer granted in the current
version, e.g., issuers who have less than 1/3 of their auditing work performed by companies unable to be
inspected by the PCAOB are no longer exempted
Dec. 18  US President Donald Trump signed into law the Holding Foreign Companies Accountable Act, which will remove Chinese
companies from American stock exchanges if they fail to comply with US auditing oversight rules within three years
Source: Public Source
Recent US Regulatory Developments Affecting Foreign US-Listed Issuers 36

IV. China FinTech Trading Update
Comparison of Selected Companies
China FinTech
Adjusted Enterprise Equity

Closing % of 52 Equity Value Multiples 2 Value Multiples 2
Price YTD Week Market Revenue P/E Consensus 2020-2021 Growth
1
Company 18-Dec-2020 Price Performance High Cap 2020 2021 2020 2021 Revenue EPS EBITDA
Lending
Lufax $ 15.34 13.6 % 4 76.1 % $ 35,142 4.6 x 4.0 x 18.5 x 16.1 x 14.5 % 28.2 % 20.6 %
360 DigiTech 11.36 16.3 62.9 1,779 0.6 0.5 3.7 3.1 4.2 10.6 5.6
Lexin 6.54 (52.9) 38.6 1,104 1.3 1.1 9.6 3.3 22.6 261.0 180.2
FinVolution Group 2.18 (17.7) 73.9 624 0.2 0.2 2.2 2.0 10.9 (16.5) (9.5)
Qudian 1.27 (73.0) 25.0 303 NM NM NM 2.7 (29.5) NA NA
Yiren Digital 3.24 (41.6) 43.9 283 NM NM 65.9 2.9 11.8 NM NM
9F Inc. 1.27 (86.8) 11.6 233 NM NM 1.3 1.2 16.0 9.2 NA
VCredit HKD 3.50 (48.5) 45.7 207 2.0 1.6 NM 2.0 25.6 NA NA
X Financial $ 2.05 (59.6) 36.3 103 0.2 0.1 1.8 2.0 1.4 (10.5) NA
51 Credit Card HKD 0.50 (65.8) 31.1 82 NA NA NA NA NA NA NA
Jianpu Technology $ 2.73 (77.1) 20.2 54 NM NM NA NA NA NM NA
Median (52.9)% 38.6 % 1.0 x 0.8 x 3.7 x 2.7 x 11.8 % 9.9 % 13.1 %
Auto Finance
Yixin Group HKD 3.25 87.9 % 100.0 % $ 2,623 8.6 x 6.2 x NM 32.7 x 38.9 % NA NA
Cango $ 7.35 (19.7) 52.5 1,043 5.2 4.1 28.6 x 18.2 26.4 69.0 % 98.2 %
Median 34.1 % 76.3 % 6.9 x 5.2 x 28.6 x 25.4 x 32.6 % 69.0 % 98.2 %
Payment
Lakala CNY 33.59 (14.4)% 66.3 % $ 3,862 3.5 x 3.0 x 26.6 x 21.7 x 17.0 % 23.0 % 14.8 %
Yeahka Limited HKD 36.35 118.4 3 45.4 2,075 4.7 3.4 40.0 25.5 36.9 57.2 43.9
China PnR 2.76 10.8 69.9 436 0.4 0.3 23.7 10.7 25.9 NM 5.4
Median 10.8 % 66.3 % 3.5 x 3.0 x 26.6 x 21.7 x 25.9 % 40.1 % 14.8 %
InsurTech
ZhongAn HKD 38.15 35.8 % 65.8 % $ 6,796 2.6 x 2.0 x NM 52.5 x 30.0 % NM (98.7)%
Huize $ 7.13 (32.1) 5 48.2 348 0.3 0.2 36.9 NM 29.8 (95.9)% NA
Median 1.8 % 57.0 % 1.4 x 1.1 x 36.9 x 52.5 x 29.9 % (95.9)x (98.7)x
Brokerage
Futu $ 43.32 319.8 % 84.8 % $ 5,849 16.2 x 10.7 x 45.3 x 27.9 x 50.9 % 50.3 % NA
Tiger Brokers 6.11 72.1 80.4 861 NA NA 62.3 27.5 NA 126.5 NA
Median 195.9 % 82.6 % 16.2 x 10.7 x 53.8 x 27.7 x 50.9 % 88.4 % NA
Financial SaaS / TaaS

Hundsun Technologies CNY 101.40 69.6 % 82.8 % $ 13,626 22.6 x 19.0 x 87.5 x 69.3 x 18.7 % 26.7 % 31.9 %
OneConnect $ 22.18 121.1 77.0 7,363 16.6 10.7 NM NM 54.5 NM NM
Shenzhen Sunline CNY 19.17 37.5 68.0 1,780 8.5 6.8 62.4 47.2 25.8 31.3 42.7
Median 69.6 % 77.0 % 16.6 x 10.7 x 75.0 x 58.3 x 25.8 % 29.0 % 37.3 %
Source: Capital IQ and IBES, as of 18-Dec-2020

1 Latest publicly available financial statements. Equity Market Cap based on diluted shares outstanding and expressed in US$ mm. 2 Numbers are based on latest publicly available financial
statements. Projected revenues, EBITDA, and EPS are based on IBES median estimates and/or other Wall Street research. All research estimates have been calendarized to December. 3 Stock
performance compared to IPO price of HKD 16.64. 4 Stock performance compared to IPO price of USD 13.50. 5 Stock performance compared to IPO price of USD 10.50.
China FinTech Trading Update 38

China Lending Companies Share Price Performance
Since Jan 01, 2020
200%
180%
160%
140%
19.4 %
120% 16.3 %
Indexed Price
14.8 %
100%
80% 17.7 %
60% (41.6)%
(48.5)%
(52.9)%
40% (59.6)%
(65.8)%
(73.0)%
20% (77.1)%
(86.8)%
0%
1-Jan-20 28-Feb-20 26-Apr-20 23-Jun-20 20-Aug-20 17-Oct-20 14-Dec-20
18-Dec-20
9F Lexin 360 Finance Vcredit FinVolution Qudian
Yirendai Jianpu 51 Credit Card X Financial Lufax S&P 500
Source: Bloomberg as of 18-Dec-2020, Company news. Based on closing prices instead of intra-day price

China Auto Finance Companies Share Price
Performance
Since Jan 01, 2020
200%
87.9 %
180%
160%
140%
Indexed Price
120%
14.8 %
100%
80% (19.7)%
60%
40%
18-Dec-20
Yixin Cango S&P 500

China Payment Companies Share Price Performance
Since Jan 01, 2020
380%
340%
300%
260%
Indexed Price
220%
105.8 %
180%
140%
14.8 %
10.8 %
100%
(14.4)%
60%
18-Dec-20
Lakala Huifu Yeahka S&P 500

China InsurTech Companies Share Price Performance
Since Jan 01, 2020
220%
200%
180%
160%
Indexed Price
140%
35.8 %
120%
14.8 %
100%
80%
(28.7)%
60%
40%
18-Dec-20
31-Aug-20
ZhongAn Huize S&P 500

China Online Brokerage Companies Share Price
Performance
Since Jan 01, 2020
500%
460%
420% 319.8 %
380%
340%
Indexed Price
300%
260%
220%
180% 72.1 %
140%
14.8 %
100%
60%
18-Dec-20
Futu Tiger Brokers S&P 500

China Financial SaaS Companies Share Price
Performance
Since Jan 01, 2020
280%
260%
240%
220% 121.1 %
200%
Indexed Price
180%
69.6 %
160%
140% 37.5 %
120%
14.8 %
100%
80%
60%
18-Dec-20
Hundsun Technologies OneConnect Shenzhen Sunline S&P 500

V. Selected GS Case Studies and GS FinTech Sector Credentials
Highlights of the Year
Key FinTech Equity Financing Led by GS

$2.4 bn $724 mm $314 mm $324 mm $1.8 bn $1.1 bn $1.6 bn
Accelerated Bookbuilt
Initial Public Offering Initial Public Offering Follow-on Offering Follow-on Offering Initial Public Offering Initial Public Offering Follow-On Offering
Lead Left Bookrunner and Left Lead Joint Lead Left Bookrunner / Joint Bookrunner /
Lead Left Bookrunner Lead Active Bookrunner Stabilization Agent Bookrunner & Stabilization Lead Left Bookrunner Syndicate Trading Joint Global Coordinator
Agent Manager
Oct-2020 Oct-2020 Aug-2020 Aug-2020 Aug-2020 Jul-2020 Feb-2020
Transformational M&A Advised by GS
$5.1 bn $2.2 bn $7.9 bn $5.3 bn $27 bn $10.6 bn $11 bn
was acquired by was acquired by was acquired by was acquired by

acquired was acquired by acquired
Pending Pending Pending Pending Pending Aug-2020 Sep-2020
Notable Stock Performance in 2020 of Chinese FinTech Company
319.8% YTD 121.1% YTD
Source: CapIQ as of 18-Dec-2020
Selected GS Case Studies and GS FinTech Sector Credentials 46

Goldman Sachs has an Unmatched Expertise in
Global FinTech Equity Offerings…
Selected FinTech Equity Offerings

$240mm $1.2 bn $328mm $515.7mm $2.4bn $724mm
Initial Public Offering Dual-Tranche Offering Follow-On Offering Follow-On Offering Initial Public Offering Initial Public Offering
Lead Left Bookrunner and Syndicate
Lead Left Bookrunner Active Bookrunner Sole Bookrunner Lead Left Bookrunner Lead Active Bookrunner
Trading Manager
Dec-2020 Dec-2020 Nov-2020 Nov-2020 Oct-2020 Oct-2020
$1.5bn $100mm $990mm $805mm $485mm $314 mm
Follow-On Offering Follow-On Offering Follow-On Offering Initial Public Offering Follow-On Offering Follow-on Offering
Joint Bookrunner / Lead Left Bookrunner / Lead Left Bookrunner / Lead Left Bookrunner and
Lead Left Bookrunner Syndicate Trading Manager
Joint Global Coordinator Syndicate Trading Manager Syndicate Trading Manager Stabilization Agent
Oct-2020 Oct-2020 Sep-2020 Sep-2020 Sep-2020 Aug-2020
$324 mm $466mm1 $1.8bn $1.1bn $630mm $635mm
Follow-on Offering Initial Public Offering Initial Public Offering Initial Public Offering Initial Public Offering Follow-On Offering
Left Lead Joint Bookrunner & Lead Left Bookrunner / Lead Left Bookrunner /
Lead Left Bookrunner Joint Bookrunner Joint Active Bookrunner
Stabilization Agent Syndicate Trading Manager Syndicate Trading Manager
Aug-2020 Aug-2020 Aug-2020 Jul-2020 Jul-2020 Jul-2020
$955mm¹ $367mm¹ $2.0bn¹ $615mm¹ $397mm¹ $102mm
Follow-On Offering Initial Public Offering Initial Public Offering Follow-On Offering Initial Public Offering Institutional Placement
Active Bookrunner / Lead Left Bookrunner / Lead Left Bookrunner / Joint Active Bookrunner /
Lead Left Bookrunner Sole Underwriter and Bookrunner
Global Coordinator Syndicate Trading Manager Syndicate Trading Manager Syndicate Trading Manager
Jul-2020 Jul-2020 Jun-2020 Jun-2020 Jun-2020 Jun-2020
$860mm $561mm $1.6bn $625mm $312mm $249mm
Accelerated Bookbuilt Accelerated Bookbuilt Accelerated Bookbuilt Accelerated Bookbuilt

Follow-On Offering Follow-On Offering Follow-On Offering Follow-On Offering Initial Public Offering Initial Public Offering
Joint Bookrunner / Active Bookrunner / Joint Bookrunner / Joint Bookrunner /

Joint Bookrunner Lead Left Bookrunner
Joint Global Coordinator Syndicate Trading Manager Joint Global Coordinator Joint Global Coordinator
May 2020 Apr-2020 Feb-2020 Jan-2020 Dec-2019 Dec-2019
Source: Dealogic, SNL, Bloomberg, company filings

¹ Includes proceeds from the exercise of the greenshoe option.

… and an Unparalleled FinTech M&A Execution
Track Record
Selected FinTech M&A
$50mm $2.8bn $2.3bn $9.5bn $5.1bn $2.2bn $1.1bn
received an
was acquired by acquired was acquired by merged with acquired was acquired by was acquired by merged with
investment from
Pending Pending Pending Pending Pending Pending Pending Pending Pending
$7.9bn $5.3bn $27bn $73mm $1.5bn $10.6bn $11bn $1.2bn $811mm
was acquired by was acquired by acquired acquired was acquired by was acquired by acquired acquired acquired
Pending Pending Pending Nov-2020 Nov-2020 Oct-2020 Sep-2020 Jun-2020 Jun-2020
£350mm1 $4.2bn $26bn $43bn $320mm
received a
acquired was acquired by acquired merged with strategic acquired was acquired by was acquired by acquired
investment from
May-2020 Apr-2020 Oct-2019 Sep-2019 Jul-2019 Jul-2019 Jul-2019 May-2019 May-2019
1 Value represents 50.1% stake in Ebury. Includes £70mm primary capital increase.

Leadership in Providing Financing Solutions to
FinTech Companies
Private Placements for FinTech Companies
$150mm $500mm $140mm €693 mm $112 mm $165 mm $292 mm $125 mm
Series F Series F Series E Secondary Funding Series B

Private Placement Private Placement ABO
Private Placement Private Placement Private Placement Private Placement Private Placement
Oct 2020 Oct 2020 Sep 2020 Aug-2020 Apr-2020 Nov-2019 May-2019 Mar-2019
Debt Finance and Structured Solutions
$1bn $300mm $1bn $194mm $500mm $1.5bn $800mm $450mm $1.3bn $737mm $575mm $300mm $4,000mm
Convertible M&A Convertible Unsecured Debt Raise Senior Convertible Convertible Senior Convertible Convertible M&A Senior
Debt Pricing Financing Debt Pricing Consumer Unsecured Senior Notes Debt Offering Unsecured Debt Pricing Debt Pricing Financing Unsecured
Loans Notes Notes Notes
Nov 2020 Nov 2020 Nov 2020 Nov 2020 Sep 2020 Sep 2020 Sep 2020 Aug 2020 Aug 2020 Jul 2020 Jun 2020 Jun 2020 May 2020
$1.0bn $543mm $500mm $2,200mm

$550mm $1,000mm $200mm $908mm $5,100mm $1,409mm $358mm $279mm $372mm
Senior Convertible Senior LBO Convertible Receivables Convertible Senior Various Various Unsecured Unsecured Debt Raise
Unsecured Debt Offering Unsecured Financing Debt Offering Warehouse Debt Offering Unsecured Senior Senior Consumer Consumer
Notes Notes Facility Notes Unsecured Unsecured Loans Loans
Notes Notes
May 2020 Apr 2020 Apr 2020 Mar 2020 Mar 2020 Feb 2020 Oct 2019 Oct 2019 Sep 2019
Aug 2019 Aug 2019 Aug 2019 Jul 2019 Jul 2019

Leadership in Providing Solutions to China FinTech
Companies
Selected Transactions
11. Globally integrated team,
combining financial and $2,363 mm $314 mm $324 mm
technology expertise
22. Trusted advisor of many Initial Public Offering Follow-on Offering Follow-on Offering
leading Fintech companies in
Lead Left Bookrunner & Lead Left Bookrunner and Left Lead Joint Bookrunner &
China Stabilization Agent Stabilization Agent Stabilization Agent
Oct-2020 Aug-2020 Aug-2020
33. Lead underwriter of Fintech $90 mm (Pre-Shoe) /
IPOs and arranger of private $312 mm $300 mm
$103.5 mm (Post-Shoe)
placements
Futu Holdings
Initial Public Offering Convertible Debt Offering
44. Lead underwriter of most Initial Public Offering
recent deals
Joint Bookrunner Advisor Lead Bookrunner
— Lufax, OneConnect, Futu, Dec-2019 Sep-2019 Mar-2019

Pintec, VCredit, Uxin, $2.5 bn $44 mm $44 mm $175 mm
Cango, Lexin, Jianpu
IPOs priced
Series B / C
Initial Public Offering Initial Public Offering Initial Public Offering
56. Deep understanding of Private Placement
critical dynamics in context of Lead Financial
Lead Bookrunner Joint Sponsor Joint Sponsor
China Fintech IPOs Advisor / Financial Advisor
Nov-2015 / Dec-2018 Oct-2018 Jul-2018 Jun-2018
— Regulatory
$225 mm $124 mm $180 mm $4.5 bn
— Industry
— Accessibility Initial Public Offering Initial Public Offering Initial Public Offering
Series A&B
Private Placements
— Business and financials
Joint Bookrunner Joint Bookrunner Joint Bookrunner Financial Advisor
Source: Dealogic, SNL, Bloomberg, company filings Jun-2018 Dec-2017 Nov-2017 Jul-2015 / Apr-2016
Note: Highlighted deals correspond to China issuers

Upstart’s $240M Initial Public Offering
Goldman Sachs Served as Lead Left Bookrunner | Priced on December 15, 2020
KEY TAKEAWAYS UPSTART OVERVIEW

1 Upstart is a Pioneer in the Application of Artificial Intelligence in
 Upstart’s mission is to enable effortless credit based on true risk
Consumer Lending  Upstart is a leading, cloud-based AI lending platform that aggregates
 First AI lending platform to receive a no-action letter for fair lending from consumer demand for high-quality loans and connects it to a network of
the Consumer Financial Protection Bureau (CFPB) Upstart AI-enabled bank partners
 Demonstrated resilience of credit performance during COVID-19 provides
evidence of the benefits of AI models  Since inception, Upstart’s bank partners have originated over 620,000
personal loans2
2 Upstart’s Equity Story Was Well-Received by Investors  Consumers on Upstart’s platform benefit from higher approval rates, lower
 Powerful flywheel effects driven by constantly improving model accuracy interest rates, and a highly automated, efficient, all-digital experience
and borrower selection
 Capital-efficient, fee-based revenue model
 Founder-led management team with Dave Girouard, Paul Gu and Anna $209mm 69% 3 out of last 4
Counselman leading the business together since 2012 LTM Revenue2 ’17 – ’19 quarters were GAAP
Revenue CAGR1 Profitable3
Pricing  Offer Price: $20 per share
69% >1,620 $743bn
Offering Size and  Base Deal: $240mm / 12mm shares of loans approved variables informing TAM in unsecured
Structure:  9mm Primary, 3mm Secondary (15% Greenshoe) instantly and fully AI model2 personal & auto loans
automated2
Fully Diluted Market
 $1.8 Billion
Cap. @ Offer GOLDMAN SACHS’ LEADERSHIP
Exchange & Symbol  NASDAQ, “UPST”
 Goldman Sachs is the #1 global technology equity underwriter in 2020
YTD
1 Calculated as the change between annual revenue from FY2017 to FY2019.  Goldman Sachs has led the most technology equity and equity-linked
2 As of Q3 2020. offerings since the COVID-19 outbreak
3 GAAP net income profitable for Q4 2019, Q1 2020, and Q3 2020 on a quarterly basis.
51
Shift4’s $1.2 Billion Dual-Tranche Offering
Goldman Sachs Served as Lead Left Bookrunner and Syndicate Trading Manager | Priced on December 2, 2020
OFFERING HIGHLIGHTS & KEY TAKEAWAYS SHIFT4 OVERVIEW
1
● Dual-Tranche Offering: Leveraged equity and convertible markets during ● Shift4 is a leading independent provider of integrated payment processing and
an extremely attractive financing environment
technology solutions
Tremendous Investor Engagement: Touched 100+ unique investors over
2
2-day roadshow with 24 1x1 meetings
● Shift4 offers its software partners a single integration to an end-to-end
payments offering, a proprietary gateway and a robust suite of technology
solutions
Repeat Issuer: This marks the 3rd time Shift4 has successfully accessed
3
the public markets in 2020
● Shift4 provides its merchants a seamless, unified consumer experience as an
● Issuance off of Elevated Stock Price: Shift4 launched the deal near its 52- alternative to relying on multiple providers to accept payments and utilize
4 technology in their businesses
week high with stock ~3x higher since IPO in June 2020
200,000+ 21,000+ 125,000+
● Attractive Terms: Shift4 upsized the convertible by 50% while pricing with Merchants Hotels Restaurants
5 a 0.00% coupon and 45.0% conversion premium, which were both
outside the initial marketing range due to strong outright demand
7,000+ 350+ 3.5 bn+ $200 bn+
KEY PRICING DETAILS Software Software Transactions Payment
Partners Integrations Volume
Convertible Notes Common Equity Note: Company statistics s of FY2019
Coupon: 0.00%
Pricing $55.50 / Share
Conversion Premium: 45%
#1 GLOBAL FINTECH FRANCHISE
$690mm
(exercised greenshoe in full) $511mm
Offering Size
(upsized from $400mm base deal (exercised greenshoe in full) ● GS is the #1 global FinTech equity underwriter in 2020YTD
size)
Initial Range / Final

0.25 – 0.75% coupon ● GS has led the most FinTech IPOs in 2019 – 2020YTD
37.5 – 42.5% conversion (0.6)% Discount / Last Trade
Discount
premium
● GS is the #1 Convertible Underwriter globally & in the US across all
Offering Structure
100% Primary Convertible 100% Secondary for Selling Pre- sectors in 2020
Offering IPO Sponsor
52
Sale of Credit Karma Tax to Square
Goldman Sachs Served as Financial Advisor to Credit Karma
Announced on November 25, 2020
TRANSACTION OVERVIEW
CASH APP CK TAX
● On November 25, 2020, Square announced it had entered ● 30mm+ Monthly Active ● Helped 2mm+ filers
into a definitive agreement to acquire Credit Karma Tax on
behalf of Cash App for $50 million
Customers1
● $1.5B+ of Annualized
+ process their returns in
the latest tax filing
season
● Credit Karma Tax provides a free, do-it-yourself tax filing Gross Profit1
service for consumers
Tax product will expand Cash App’s diverse
● Cash App is a financial services app that allows individuals ecosystem of financial tools, giving customers another
to spend, send, store and invest money way to manage their finances from their pocket
MARKET OPPORTUNITY IN THE U.S. #1 GLOBAL TECH M&A FRANCHISE
 #1 in Global TMT M&A in 7 of the last 8 years

1 in 2 80mm
Tax Filers Self-
$2K+  #1 in Global Tech M&A since 2010
Self-Prepared Tax
Prepared and Filed Average Refund
eFilers
Electronically  #1 Global Financial Technology M&A advisor since
2010
1 Monthly Active Customers as of June 2020. Annualized Gross Profit as of Q3 2020.
53
Bill.com’s $1 Billion Convertible Debt Offering
Goldman Sachs Served as Lead Left Bookrunner & Syndicate Trading Manager
Priced on November 24, 2020
GS / Bill.com
OFFERING HIGHLIGHTS
Bill.com champions SMBs through cloud-based
Longstanding ● First Time Public Convert Issuer: In a volatile backdrop, Bill.com was
Relationship able to access the market in the company’s first convertible offering software that simplifies, digitizes, and automates
$1bn ● Historic Terms: This transaction represents the tightest convertible complex back-office financial operations
Nov-2020 pricing in history for a company within 1 year of its IPO
Lead Left
● Transaction Upsize with Efficient Pricing: Bill.com was able to upsize
Bookrunner the transaction by 33% while pricing with a 0.00% coupon and a premium
Convertible Debt above the top end of the initial range
● Opportunistic Financing: BILL’s stock is up ~396% since its IPO in 103K+ 2.5M+ 121% $30B
$615mm December of 2019. The company purchased a capped call, which brings
Jun-2020 its effective conversion premium up to 100%, 82% above the stock’s all
time high and nearly 10x the IPO price
Lead Left
Bookrunner Customers1 Network Net Dollar Global
Follow-On Members2 Retention Rate2 TAM2
KEY PRICING DETAILS 1 As of September 30, 2020. 2 As of June 30, 2020.
$249mm
Dec-2019 $1,000mm + $150mm greenshoe
Deal Size: (upsized from $750mm +$112.5mm
Lead Left
Bookrunner
greenshoe) PARTNERING WITH CLIENTS
IPO Maturity: 5 Years
THROUGHOUT THE COVID-19 CRISIS
0.00%
$88mm
Apr-2019
Coupon:
(Marketing Range: 0.00% - 0.25%) ● Goldman Sachs is the #1 Global and US convertible bookrunner
Conversion 47.5% 2020YTD
● Goldman Sachs is the #1 Tech bookrunner in equity & equity-linked
Sole Placement
Agent
Premium: (Marketing Range: 40.0% - 45.0%)
Series H
Effective Conversion
100.0%
markets 2020YTD
Premium:
54
Creating a Global Leader in the Fight Against Financial Crime
Nasdaq’s $2.75bn Acquisition of Verafin

Goldman Sachs Served as Financial Advisor to Nasdaq
TRANSACTION OVERVIEW STRATEGIC RATIONALE
● On November 19, 2020, Nasdaq, Inc. (NASDAQ: NDAQ) announced a definitive agreement to 1 Leading Industry Position
acquire Verafin Inc. for $2.75bn in cash — Combines Nasdaq’s global reach and established regulatory
● Nasdaq intends to finance the transaction with a combination of US$2.5bn of debt and cash on technology leadership with Verafin’s innovative anti-money laundering
hand and expects debt / non-GAAP EBITDA leverage to be approximately 3.9x pro forma for and fraud platform and client breadth
the transaction
● Verafin has grown at a CAGR of approximately 30% 1 over the last three years and expects to 2 Large and Growing Total Addressable Market
deliver in excess of $140mm2 in revenue in 2021, representing an implied multiple of
— Anti-financial crime technology represents a large and growing sector
approximately 19.5x revenue, in line with high-growth SaaS companies
with structural and regulatory tailwinds
● Verafin’s results will be reported within Nasdaq’s Market Technology segment. As a result,
— Automation and vendor solutions represent a $13bn market according
Nasdaq is raising its Market Technology segment’s medium-term organic revenue annualized
to Oliver Wyman
growth outlook to 13-16% (from 8-11% previously)
● The acquisition of Verafin is also expected to accelerate Market Technology’s projected timing
of meeting the “rule of 40”3 threshold to 2023, two years ahead of Market Technology’s 2025 3 Highly Complementary Businesses
target — Verafin’s capabilities will be available to the global network of nearly
● The transaction is expected to close in the first quarter of 2021 subject to regulatory approvals 250 financial institutions and regulatory authorities that rely on
and other customary closing conditions. Spectrum Equity and Information Venture Partners Nasdaq’s existing technology to detect market manipulation and abuse
have agreed to sell their stake in Verafin as part of the transaction — Nasdaq expects that its deep relationships with the majority of Tier 1
● Global financial technology company serving the capital markets and other and Tier 2 banks globally will accelerate Verafin’s strategy
industries through a diverse offering of data, analytics, software, and services
● Industry leader in enterprise Financial Crime Management solutions, providing 4 Meets All of Nasdaq’s Acquisition Investment Criteria
a cloud-based, secure software platform for over 2,000 banks and credit unions — Strong strategic and cultural fit, accelerating Nasdaq’s evolution into a
GOLDMAN SACHS LEADERSHIP technology, analytics and infrastructure provider
— Expected to enhance Nasdaq’s performance and valuation potential, in
● #1 Global Financial Technology advisor in 2020 particular by accelerating organic revenue4 growth outlook within its
● #1 Global Financial Technology advisor since 2010 Solutions Segments to 6-9% (from 5-7% previously)
1 Represents annualized revenue of active contracts (ARR). ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other
— Expected to deliver EPS accretion beginning in 2022 and meets
companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast and the active
contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by customers. 2 Excludes the impact of purchase accounting write-down on deferred
Nasdaq’s ROIC and IRR objectives
revenue. 3 Represents non-GAAP EBITDA margin percentage plus annual growth rate. 4 Refer to the Non-GAAP information section of Nasdaq’s press release for this and other non-GAAP measures.
55
Sale of ISS to Deutsche Börse for $2,275mm
Goldman Sachs Served as Exclusive Financial Advisor to ISS
TRANSACTION OVERVIEW STRATEGIC RATIONALE
● On November 17, 2020, Deutsche Börse (XETRA: DB1) announced that it will acquire a 1 Leading Governance, ESG Data and Analytics Provider
majority share of approximately 80% in Institutional Shareholder Services (ISS). Genstar Capital — Positions Deutsche Börse as a leading global provider of ESG data
and current management will continue to hold a stake of approximately 20% and analytics
● Transaction values ISS at an enterprise value of $2,275mm (€1,925mm) for 100% of the — Deutsche Börse strongly commits to one of the key megatrends in the
business (cash and debt free) industry that will fundamentally change the investment space
● In 2020, ISS is expected to generate net revenue of more than $280mm (pro-forma IFRS) and — ISS’ 4,000+ clients include many of the world’s leading institutional
an adjusted EBITDA margin of approximately 35% pre-transaction effects, which has further investors and public companies focused on ESG and governance
operating leverage potential data, analytics, and research
● Organic net revenue of ISS is expected to grow at a rate of more than 5% on average per
annum until 2023
● Deutsche Börse will report ISS’ financial performance as a separate pre-trading segment and
2 Highly Complementary Businesses
— Creates opportunities for growth in ESG solutions from the partnership
ISS will operate at an arms-length basis with the same editorial control in its research
with the leading index and analytics capabilities of Qontigo
organization that is in place today
— Provides benefits for ISS’ data distribution from the leading position of
● The transaction is expected to close in the first half of 2021 subject to customary closing Clearstream in the investment funds space
conditions and regulatory approvals
— Leverages ISS’ unique access to the buyside and the combination of
● Leading provider of corporate governance and responsible investment ISS’ strong US footprint with Deutsche Börse’s leading position in
solutions, market intelligence and fund services and events and editorial Europe
content for institutional investors and corporations globally — Deutsche Börse stated that revenue synergies are expected to result
in €15mm additional EBITDA by 2023
● International exchange organization and innovative market infrastructure
provider, with services across the market infrastructure value chain
GOLDMAN SACHS LEADERSHIP 3 Next Step in Pre-Trade Growth Strategy

— Complements the creation of Qontigo in 2019, formed from the
● #1 Global Financial Technology advisor in 2020 combination of the analytics capabilities of Axioma with Deutsche
● #1 Global Financial Technology advisor since 2010 Börse’s existing STOXX and DAX index businesses
56
Nexi to Combine with Nets in All-Share Merger, Valuing Nets €7.8bn¹
Goldman Sachs International Acted as Financial Advisor to Nexi - Announced on November 15, 2020
Transaction Details Overview of Nexi
● On November 15, 2020, Nexi S.p.A. (“Nexi”) and Nets A/S (“Nets”) ● Nexi is the leading PayTech company in Italy, listed on MTA of Borsa Italiana
announced a binding framework agreement regarding the combination ● Nexi operates in strong partnership with ~150 partner banks, providing integrated
of the two groups through an all-share merger end-to-end omni-channel technology that connects banks, merchants and
● Nets is valued at enterprise value of €7.8bn and equity value of €6.0bn¹, consumers enabling digital payments
resulting in an implied EV/EBITDA 2020E of ~20x²
● In addition, a potential earn-out of up to €250m will be payable in newly Merchant Services
~900k merchants served together with partner banks
issued Nexi shares in 2022, contingent on the 2021 EBITDA & Solutions
performance of Nets
Cards
● Nets’ shareholders will receive about 406.6m new Nexi shares³, & Digital Payments
~41.6m payment cards managed, together with partner banks
resulting in a pro-forma ownership of 39% in Nexi + Nets
● The combination is expected to provide significant value creation from Digital Banking 13k ATM, 469k e-banking workstations, ~947m clearing
~€170m of estimated run-rate recurring cash synergies Solutions transactions
Strategic Rationale Overview of Nets

● Headquartered in Denmark, Nets is one of the largest integrated Pan-European
Create the largest pan-European platform with the scale to drive superior PayTech companies with leadership position in the Nordics, as well as in
1 product and efficiency leadership underpenetrated geographies with growth potential (such as DACH, Poland, SEE)
● Over the past 3 years, under Hellman & Friedman’s ownership, Nets has undergone
Extensive reach across >25 countries, with presence in most significant investments resulting in (i) accelerated growth, both organically and
2 attractive, fast-growing and under-penetrated European markets through strategic M&A (Concardis, Dotpay/eCard, P24, and PeP) and (ii) refocus on
its core business following the €2.9bn disposal of Corporate Services to MasterCard
● Nets generated €1.1bn in revenues and €387m in EBITDA in 20194
Create a best-of-breed technology platform leveraging on
3 complementarity and scale Merchant
~740k merchants, ~250 financial institutions served
Services
Achieve superior profitability and cash generation at scale, with enhanced
4 business resilience stemming from geographic diversification, e-comm Issuer & eSecurity
>40m payment cards managed
exposure and significantly lower customer concentration Services
Source: Press release. ¹ Based on Nexi share price of €14.71 as of 13-Nov-2020, implying enterprise and equity value for Nets of €7.8bn and €6.0bn; ² Based on latest FY2020 pro-forma EBITDA forecast of €381m; ³ 57
Excluding earn out shares or other shares related to a precedent M&A transaction executed by Nets where potential cash-in in favour of Nets is possible; 4 Pro-forma for sale of Corporate Services division and recent
acquisitions in Poland.
Duck Creek’s $328mm Follow-On Offering
Goldman Sachs Served as an Active Bookrunner
Priced on November 10, 2020
KEY TAKEAWAYS DUCK CREEK OVERVIEW

● Duck Creek is a leading SaaS provider of core system solutions to the P&C
Strong stock price performance following August IPO (up ~75% at time of
insurance industry
1 launch) allowed for an early lock up release and helped facilitate the first
liquidity event since IPO for Apax and Accenture
● Duck Creek’s enterprise SaaS solution, Duck Creek OnDemand, enhances
organizational agility, product innovation and consumer experience, allowing
insurance carriers to react quickly to evolving consumer preferences and efficiently
capture market opportunity, while reducing total cost of ownership
Offering comes on the back of strong Q4 performance, including accelerating
2 cloud ARR growth and new customer wins
$212mm 85% 96%
Revenue SaaS ARR Growth Subscription as %
of Total Bookings
KEY PRICING DETAILS
Pricing Date • November 10, 2020 117% $15bn 150+
SaaS Net Dollar Global TAM Insurance Customers
Offering Size • Base Deal Size: $328mm / 8.00mm shares Retention Worldwide
Offering Structure • 100% Secondary
Offer Price • $41.00

GOLDMAN SACHS’ LEADERSHIP
● Goldman Sachs is the #1 global technology equity underwriter in 2020
Offer Price relative to
• + 52% YTD
IPO
• 2-day roadshow / 14 1x1 investor conference calls ● Goldman Sachs has led the most technology equity and equity-linked
Marketing offerings since the COVID-19 outbreak
and 1 large group investor call
Note: Financial metrics based on FY’20 ending 31-Aug-2020.
58
Square’s Dual Tranche $1 Billion Convertible Debt Offering
Goldman Sachs Served as Sole Bookrunner | Priced on November 9, 2020
OFFERING HIGHLIGHTS & KEY TAKEAWAYS COMPANY OVERVIEW

● Repeat Issuer: $1 billion capital raise while achieving the most ● Square creates tools that empower businesses, sellers and individuals to participate
1 in the economy
efficient pricing of the company’s four issuances
● Square offers a cohesive commerce ecosystem that helps sellers start, run, and
Historic Terms: This transaction represents the lowest grow their businesses, at attractive unit economics, with a positive gross profit
2 coupon/highest conversion premium achieved in over 15 years retention for each seller cohort and a 3 – 4 quarter payback period
after pricing through the issuer friendly end of the marketing range ● Square also offers Cash App, which provides an ecosystem of financial products
and services to help 30+ million monthly customers manage their money
Longstanding Relationship: Builds on GS’ long-term relationship
3 with Square, having served as lead or sole bookrunner on all of the
company’s financings over the last 4 years
● Issuance off of Elevated Stock Price: Square launched its deal at

4
its 52 week high with its stock price tripling over the last year
KEY PRICING DETAILS

$1,000mm + $150mm greenshoe
Total Deal Size:
(Two Tranches of $500mm + $75mm)
Maturity: 5.5 Years 7 Years
0.00% 0.25%
Coupon: (Marketing Range: (Marketing Range:
0.00 – 0.25%) 0.25 – 0.75%)
GOLDMAN SACHS’ #1 TECHNOLOGY FINANCING
62.5%
Conversion Premium:
(Marketing Range: 55.0% - 60.0%)
FRANCHISE
● Goldman Sachs is the #1 US convertible bookrunner in 2020
Effective Conversion
100.0% 125.0%
● Goldman Sachs is the #1 US-listed tech bookrunner in 2020
Premium:
59
The Goldman Sachs AEJ FinTech Team
Craig Murray Pol De Win Teresa Zhang
Managing Director Managing Director Executive Director

Head of APEJ Head of Asia FinTech AEJ FinTech Coverage
Financial Institutions Group
+852 2978-7489 +852 2978-7280 +852 2978-6119

craig.murray@gs.com pol.dewin@gs.com teresa.zhang@gs.com
Jason Leung John Lin Cassie Zhang
Associate Associate Analyst
+852 2978-0751 +852 2978-0838 +852 2978-2681

jason.leung@gs.com john.lin@gs.com cassie.zhang@gs.com

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including those involving swaps and options, give rise to substantial risk and are not suitable for all investors. Goldman Sachs does not provide accounting, tax, or legal advice.
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the research departments of Goldman Sachs. All materials, including proposed terms and conditions, are indicative and for discussion purposes only. Finalized terms and conditions
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complete; however, we are not responsible for errors or omissions that may occur. Further information regarding this material may be obtained upon request.
General Statement of Distribution Principles: Goldman Sachs is committed to managing securities offerings such that our clients are treated fairly and to conducting our business
with integrity and according to proper standards. Our policy is that the pricing of bookbuilt securities offerings and allocations to investors should be transparent to the issuer or
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the past or future award of corporate finance business, or expressly or implicitly conditional upon the receipt of other orders for investments or the purchase of other services. Where
we underwrite an offering or otherwise guarantee a price in connection with an offering, we will take into account our prudential responsibilities to manage our risk properly when
determining allocations and their manner and timing.

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China Monthly FinTech Update | Issue #7

Goldman Sachs (Asia) L.L.C.

I. Greater China FinTech Sector News

CBIRC Releases New Regulatory Guidance on Online Insurance Business (“Guidance”)

Source: News run

Greater China FinTech Sector News 5

Cross-border Payments is on the Horizon for the Digital Yuan

Source: News run

Greater China FinTech Sector News 6

Singapore Accounted for Approximately 42% of ASEAN FinTech Financing in 9M2020

China’s P2P Platforms in Operation Reach Zero Following Complete Restructuring

Source: News run

Greater China FinTech Sector News 7

Source: News run

Greater China FinTech Sector News 8

Company Business / Operating Financial Asset Quality Others

Source: Company filings

Company Business / Operating Financial Asset Quality Others

Source: Company filings

Company Business / Operating Financial Asset Quality Others

 Percentage of funding from financial institutions

Company Business / Operating Financial Client Assets Other

 Mr. Lei Huang was approved by

 Total trading volume was HKD

Source: Company filings

Company Business / Operating Financial Asset Quality Others

Source: Company filings

Company Business / Operating Financial Others

 Total Gross Written Premiums (“GWP”) was

Source: Company filings

Company Business / Operating Financial Others

Source: Company filings

Source: Public information

Greater China FinTech Sector News 18

Source: Public information

Greater China FinTech Sector News 19

Peak to Acquire Banking AI Software Company Zhongke Software Intelligence Ltd.

Source: Public information

Greater China FinTech Sector News 20

GFI Announces New Joint Venture in China

China Construction Bank’s Blockchain Bond Efforts Take a New Direction

Source: Public information

Greater China FinTech Sector News 21

China’s Ant Considers Paytm Stake Sale

Source: Public information

Greater China FinTech Sector News 22

OneConnect Launches "Linked Port" in China's Greater Bay Area

Huatai Securities and Bloomberg Establish Global Strategic Collaboration

Source: Public information

Greater China FinTech Sector News 23

Bytedance Expands Search Ads, Kuaishou Obtains Payment License

Source: Public information

Greater China FinTech Sector News 24

JD.com Becomes China’s First Mall to Test Digital Yuan

Source: Public information

Greater China FinTech Sector News 25

Wed Jan 6 - Thu Jan 7, 2021

Goldman Sachs cordially invites you to

Confirmed companies below (more to follow):