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FINANCE

Microlenders’ Debt Sales Slump as Crackdown Bites

Ant Financial Services Group has dominated the market for consumer loan-backed asset-backed securities through its two online lending services, Huabei and Jiebei, who accounted for 91% of total issuance in 2017 with the sale of 236.3 billion yuan of securities, according to China Securitization Analytics  data.
Ant Financial Services Group has dominated the market for consumer loan-backed asset-backed securities through its two online lending services, Huabei and Jiebei, who accounted for 91% of total issuance in 2017 with the sale of 236.3 billion yuan of securities, according to China Securitization Analytics data.

Sales of debt backed by consumer loans, one of the main fundraising channels used by China’s online lenders to expand their business, have slumped in the wake of a government clampdown on the country’s unruly microlending industry.

Sales of such products, known as asset-backed securities (ABS), slid to 11.7 billion yuan ($1.8 billion) in December 2017 after hitting a record high of 51.2 billion yuan in November, according to data provider China Securitization Analytics (CSA). No ABS backed by consumer loans have been issued so far this year, the data show.

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