Yintech Investment Holdings Limited (NASDAQ:YIN) Q3 2019 Earnings Conference Call - Final Transcript

Dec 02, 2019 • 08:00 am ET

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Yintech Investment Holdings Limited (NASDAQ:YIN) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Yes, thank you. [Operator Instructions] And the first question comes from Hunter Diamond from Diamond Equity Research.

Analyst
Hunter Diamond

Hi. Firstly, congratulations on the very strong results. The market seems to be liking it before the market opens in the U.S. You mentioned blockchain, I'm just wondering what sort of services are you looking to develop on the blockchain, I know it has numerous applications for investment firms. And also are you looking to develop cryptocurrency investment offerings, which I know are very popular in Asia. Bitcoin are they purchasing directly or Bitcoin futures?

Executive
Yvonne Young

Hunter, thank you for the questions. I think the first one is about the blockchain Mr. Chen, introduced in his remarks, what about the second one?

Analyst
Hunter Diamond

So are you looking to develop or is the company thinking about developing Bitcoin either direct purchases or Bitcoin futures as investment products? They're very common in the United States Bitcoin futures or Bitcoin cryptocurrency purchasing for investors?

Executive
Yvonne Young

Okay, I see. [Foreign Speech]

Executive
Wenbin Chen

[Foreign Speech]

Executive
Yvonne Young

Thank you for your questions. Let me address your first one about the adoption of the blockchain in our products and services. Well, the major reason for us to adopt the blockchain is that we introduced it to the development and surveys of our entire product development life to ensure that we are fully compliant with the regulatory requirements which is very key for the financial service provider like us. As you know that major of our business are licensed, that means that we are certified by the regulatory authorities for operating and then as well as for our clients, compliance is one of the major concerns from their standpoint as well. So by adopting the blockchain into our products, we are able to serve our clients in the entire product cycle, including from development to the back office service, and it will help us to comply with the authority on one hand, on the other hand, you will keep the transactional record of our clients, and make us more compliant and more trustful by our clients.

Executive
Wenbin Chen

[Foreign Speech]

Executive
Yvonne Young

We will not consider providing the products or services to our clients for [Indecipherable] point which is not our consideration in the short or to the long run. Our focus will also -- will be on our existing five product lines, which is commodities and securities segments.

Analyst
Hunter Diamond

Got it. Perfect. No makes sense. In terms -- my second question would just be, you mentioned the asset management has 14 products with one point -- almost 1.5 billion AUM. I know, real estate products are very popular for wealth management, specifically with high net worth in China. What are the products that you got -- the company is looking to develop or other asset classes? I mean the 14 you have now, do you know sort of what are the areas the company is looking at, is it more real estate or just long equity -- other long equity products? And do you have any idea sort of how many