Internet consumer finance ABS restarts, consumer finance financial bond issuance is still suspended

Recently, I learned that the previously suspended Internet consumer finance ABS has been restarted.

According to the official website of China Asset Securitization Network (CNABS), recently, JD.com "Special Plan for Dongdao No. 7 Phase 8 Jingdong Baitiao Accounts Receivable Credit Assets Support Special Plan" and "Dongdao No. 7 Phase 6 Jingdong Baitiao Accounts Receivable Assets Support Special Plan" , Meituan Micro-loan "CICC-Beautiful Life No. 11 Asset-backed Special Plan", "Zhuzheng-Meiman Business 2022 No. 1 Asset-backed Special Plan" and other products have been intensively approved.

"In addition to Ant, the consumer loan ABS of other Internet platforms have been restarted." A practitioner from an Internet agency said.

It was previously exclusively reported that, affected by the suspension of ABS by Ant Group, the two exchanges have completely suspended the issuance of consumer financial asset securitization products. The latest issue of Internet consumer finance ABS products is still on March 8, 2022. Meituan Microcredit has issued the "Zuozheng-Meiman Business Phase 5 Asset-Backed Special Plan" on the Shanghai Stock Exchange, with an issuance amount of 1 billion yuan.

In November 2020, the strictest supervision order for online small loan companies was issued, and then Ant Group suspended its listing. At the same time, the scale of Ali-based ABS financing has shrunk on a large scale. And Ant Group has not added ABS since 2021. Since then, other Internet agencies have carved up the ABS market.

Statistics show that the ABS of consumer loans for exchange companies is mainly issued by leading Internet small loan companies. In 2021, other Internet small loan platforms except Ant have increased their issuance efforts. In 2021, JD.com and Baidu will issue a total of 78.142 billion yuan. , the issuance volume increased by 116.73% year-on-year.

In addition, it is worth mentioning that, apart from Internet companies, consumer finance companies have collectively been cold in terms of funding channels since the beginning of this year.

A person from the inter-bank department of a consumer finance company pointed out that since October 2021, the supervision has stopped the issuance of consumer finance financial bonds. Although some local banking and insurance regulatory commissions have approved the bond issuance quota of consumer finance companies, so far this year, no company has passed the central bank's approval. Many consumer finance companies are still submitting applications to the central bank.

In addition, in terms of ABS issuance, statistics show that since the beginning of this year, only Xingye Xiaojin and Maxiajin have issued 1.952 billion yuan and 1.705 billion yuan of ABS respectively.

Incomplete statistics show that in 2021, consumer finance companies including Home Credit, Industrial, China Post, and Hangyin have issued 10 issues of ABS with a total value of 13.227 billion yuan.

In this regard, some industry insiders pointed out that as online small loan companies switch to consumer gold licenses and consumer finance companies expand, the issuance of consumer finance financial bonds is also expected to restart in the future. In the future, the issuance of ABS by Ant Small Loans will also be undertaken by consumer finance companies.