JD Launches ABS Cloud Platform as Web Finance Penetrates Asset Securitization Market
Yicai Global
/SOURCE : Yicai
JD Launches ABS Cloud Platform as Web Finance Penetrates Asset Securitization Market

(Yicai Global) Sept. 7 -- Yesterday, JD Finance Group announced the debut of its asset securitization cloud platform (ABS cloud platform) in a sign that Internet finance has sped up its infiltration of the asset securitization market.

The ABS cloud platform mainly covers three businesses: infrastructure services for asset securitization service providers, capital intermediary business for asset cloud facilities and mezzanine fund investment, JD Finance said at a Beijing press conference yesterday.

That announcement comes just one day after Xiamen International Financial Technology Co. rolled out its asset securitization full-flow sharing work platform called ABS Cloud, which has been developed and tested for nearly a year.

Both companies are positioning themselves as independent third-party asset securitization service providers that offer design, issue and management services for asset-securitized products. Both hope to consolidate all the links in the asset securitization industry chain by building infrastructure, according to information disclosed to the press.

Aside from these two players, Zhong'an Insurance is also widely involved in the asset-backed securities market and infrastructure construction this year. However, Zhong'an Insurance focuses on consumer finance, while Xiamen International Financial Technology and JD Finance target all intermediaries and initiators in the ABS market.

China's asset securitization market has developed rapidly since 2014, growing 15-fold over late 2013. Over USD13.5 billion (CNY900 billion) worth of products were issued in 2014 and 2015, more than six times the issues of nine years ago. In terms of product mix, credit asset-backed securities always account for a large proportion.

Set up last year, Xiamen International Financial Technology is the country's first Internet finance platform focusing on the provision of asset securitization services. Mr. Cao Tong, who served as president of WeBank, China's first online-only bank owned by Tencent Holdings Ltd. [HKG:0700], is its chairman.

JD Finance is a subsidiary of JD Group and mainly has two products: JD Crowdfunding and JD Blank Note, namely IOU. JD.com [NASDAQ:JD], owned by JD Group, is one of the country's two largest e-commerce companies.

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