Ant Group’s Huabei and Jiebei online credit platforms have suspended 18 billion yuan (approx. USD$2.82 billion) in asset-backed securities (ABS) underpinned by consumer loans.
According to information from the Shanghai Stock Exchange the two ABS that have been suspended include the:
- CITIC Securities Jiebei 5 to 14 Period Consumer Loan Asset-backed Special Plan (中信证券借呗五至十四期消费贷款资产支持专项计划) (10 billion yuan);
- The Tianhong Chuangxin Huabei 8 – 15 Period Consumer Credit Asset-backed Special Plan (天弘创新花呗第8-15期消费授信融资资产支持专项计划) (8 billion yuan).
According to domestic media reports the platforms suspended the products after Chinese regulators required that they make adjustments to them in order to prevent Ant Group from engaging in “inappropriate competitive conduct” in the area of payments operations, and to sever “inappropriate links” between Alipay and financial products such as Huabei and Jiebei.
The ABS plans first obtained approval from Chinese regulators at the end of November last year.