Risk pool to lend to online firms set up
By Zhang Fengming |
August 4, 2009, Tuesday
|
Print Edition
Print Edition
THE Shanghai government yesterday teamed up with China Construction Bank and Alibaba.com to jointly set up a risk pool of 60 million yuan (US$8.8 million) to nurture credit to online small and medium business.
The Shanghai branch of the China National Investment & Guaranty Co signed the deal with the Beijing-based bank and the Hangzhou-based online B2B marketplace on behalf of the Shanghai municipal government yesterday. Each party injected 20 million yuan to set up the risk pool.
The risk pool will help cover defaults linked to credit issued to SMEs doing business via Alibaba.com.
"The risk pool is expected to leverage credit of more than 3 billion yuan, or a maximum of close to 10 billion yuan," said the Shanghai Financial Services Office yesterday. "The amount can help meet demand for credit from up to 5,000 small business clients based on an average demand of 1.8 million yuan from a small business."
Credit guarantee
The China National Investment & Guaranty Co is a state-owned company focusing on credit guarantee.
The risk pool encourages banks to issue credit to smaller businesses, which find it difficult to get loans due to a lack of credit records and collateral. Alibaba.com also benefits from the deal as its clients have access to credit.
The Shanghai branch of CCB yesterday lent a combined unsecured credit of 8 million yuan to four Alibaba.com clients. The credit, without collateral, is given based on the clients' track records with Alibaba.
The Shanghai branch of CCB will also offer financial services to Alibaba.com clients registered in the city. Alibaba.com has nearly 50,000 Shanghai-registered clients in its e-banking database.
The three-party alliance follows the central government's call to boost credit to small business in China, especially after the global financial crisis broke.
Alibaba.com and CCB have similar deals with governments of Hangzhou and Zhejiang Province.
The Shanghai branch of the China National Investment & Guaranty Co signed the deal with the Beijing-based bank and the Hangzhou-based online B2B marketplace on behalf of the Shanghai municipal government yesterday. Each party injected 20 million yuan to set up the risk pool.
The risk pool will help cover defaults linked to credit issued to SMEs doing business via Alibaba.com.
"The risk pool is expected to leverage credit of more than 3 billion yuan, or a maximum of close to 10 billion yuan," said the Shanghai Financial Services Office yesterday. "The amount can help meet demand for credit from up to 5,000 small business clients based on an average demand of 1.8 million yuan from a small business."
Credit guarantee
The China National Investment & Guaranty Co is a state-owned company focusing on credit guarantee.
The risk pool encourages banks to issue credit to smaller businesses, which find it difficult to get loans due to a lack of credit records and collateral. Alibaba.com also benefits from the deal as its clients have access to credit.
The Shanghai branch of CCB yesterday lent a combined unsecured credit of 8 million yuan to four Alibaba.com clients. The credit, without collateral, is given based on the clients' track records with Alibaba.
The Shanghai branch of CCB will also offer financial services to Alibaba.com clients registered in the city. Alibaba.com has nearly 50,000 Shanghai-registered clients in its e-banking database.
The three-party alliance follows the central government's call to boost credit to small business in China, especially after the global financial crisis broke.
Alibaba.com and CCB have similar deals with governments of Hangzhou and Zhejiang Province.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
