On 28 October, 2015, “Jingdong IOU Accounts Receivable Creditor’s Right Asset-backed Special Plan” (hereinafter referred to as “Jingdong IOU Special Plan”), managed by Huatai Securities (Shanghai) Asset Management Co., Ltd., was successfully listed on Shenzhen Stock Exchange (“SZSE”).
Jingdong IOU Special Plan plans to raise a fund scale of RMB800 million, with the duration of 24 months. Prior, subprime and subordinated asset-backed securities account for 75%, 15% and 10% respectively. Prior and subprime asset-backed securities are rated as AAA and AA- respectively, with the issuing interest rates of 5.1% and 7.3% respectively.
The underlying assets of Jingdong IOU Special Plan are the accounts receivables arising from credit sales of Beijing Jingdong Century Trading Co., Ltd. to eligible users on JD.com in the form of “IOU”. According to such sales contract, originators distribute and deliver goods to their users, and users will pay corresponding consideration to the originators within the agreed period. Jingdong IOU Special Plan is one of the first-batch asset securitized products listed on SZSE with the underlying asset of Internet accounts receivable after the filing system of asset securitization business, moreover, it’s another phased result that uses the innovative service of asset securitized products to support financial innovation after Alibaba Microcredit and CFPA Mircofinance series products.
On 4 July, 2015, the State Council issued the guiding opinions on active promotion of “Internet Plus” actions, which explicitly encourage to constantly deepen the integration of e-commerce with other industries, popularize network production, circulation and consumption, promote e-commerce application and innovation, and actively expand the depth and width of the Internet financial service innovation. “Jingdong IOU”, as a consumer finance business for individual consumers, enables users to enjoy the credit purchase service of “consume first and pay later” while shopping online, which is an innovative business involving the integration of e-commerce and Internet financial sector.
In terms of product design and underlying assets management, Jingdong IOU Special Plan effectively uses the big data system from multiple sources, it’s based on the big data of sellers on JD.com and supplemented by all valid data of Jingdong system to make credit-evaluation data source diversified and multi-layered, so as to implement the screening and subsequent management of eligible underlying assets. It has obvious advantages in efficiency and risk control, and has effectively implemented the requirements of the Action Outline of the State Council for Big Data Promotion regarding using big data to stimulate business model innovation, create new business formats, promote innovative and value-added services and enhance enterprise core values. In the actual business, the non-performing assets ratio of Jingdong IOU is less than 1%, which shows strong risk control ability.
Under current economic new normal, the issuing and listing of Jingdong IOU Special Plan gives Internet innovation into full play, which has significant social influence and demonstration effect. SZSE will continue to keep close communication with all parties, promote asset securitization business innovation, guide social capital to invest in key support fields and other fields related with the national economy and the people’s livelihood, pay attention to standard disclosure of product operation situation, and provide innovative capital services for real economy under the condition of controllable risk.
