Alibaba to Issue Loan-Backed Securities on Shenzhen Exchange
The Beijing News, 7/09/13
The Shenzhen Stock Exchange (SZSE) has announced in a regulatory filing that the "Orient-Alibaba Capital Management Plan" submitted to the China Securities Regulatory Commission (CSRC) by Orient Securities and Chinese e-commerce conglomerate Alibaba Group has received CSRC approval. Under the terms of the plan, Orient will release investment products, comprised of small merchant loans from Alibaba's Small and Micro Financial Services Group, on the SZSE. Alibaba has stated that revenue from the arrangement will be used to boost Alibaba Small and Micro Finance capital, which will in turn be loaned to Alibaba Group small merchants.
Alibaba Small and Micro Financial Services Group (through its two registered subsidiaries) has registered capital of RMB 1.6 bln. According to Chinese small loan regulations, the company can hold no more than RMB 2.4 bln in outstanding loans.
Editor's Note: For more information on this topic, please see "Alibaba to Expand Microenterprise Loans to 3 Mln Merchants," MD 5/20/13 and "Alibaba SME Loans Reach RMB 11 Bln in Q1 2013," MD 5/16/13 issues.
Keywords: financing e-commerce Internet CSRC Shenzhen Stock Exchange Orient Securities Alibaba Group
Sending
