Huabei provides consumers with up to 40 days of free credit, while borrowers who need more cash loans can choose to borrow. Most of the credit provided by these two products has a daily interest rate cap of 0.04%, or an annualized rate of 15.6%. There is no guarantee for either.
The way ants deal with credit risk also looks like a credit card company. The groups prospectus repeatedly reminds readers that it does not use its own balance sheet or provide guarantees. As of June, about 98% of the credit balance was underwritten by partners such as banks or trust companies. The ant just earns service fees from its partners.
Ant said it would rely on intelligent decision-making systems to ensure that it provided valuable borrowers to its partners. However, in the current economic environment, this is a big assumption. The groups prospectus States, if the borrowers credit position deteriorates, or we are unable to track its deterioration, the criteria we use to analyze the borrowers credit position may become inaccurate and our risk management system may become ineffective.
The particularity of financial business also means ants will be affected by the changing regulatory structure. On August 20, for example, the Chinese government lowered the legally recognized ceiling on private lending rates to 15.4%. The group acknowledged that it needed to be prepared for the possibility of extending the policy to its microfinance subsidiaries.
In addition, the instability of ants income has been ignored. In its offering documents, ants disclosed the three years (rather than quarters) up to 2019. This kind of disclosure may cover up the influence of government policies on it. From the end of 2017, for example, ant has had to significantly change its online credit business to comply with government policies that strictly regulate debt.
MasterCard is a New York based payment company. Its core products are credit card, debit card and prepaid card, as well as innovative multi-functional platform, providing services to consumers, governments and merchants around the world. The company currently has a market value of $348.029 billion on the New York Stock Exchange. PayPal is an online payment service provider headquartered in San Jose, California, providing transfer, payment or collection services. The company currently has a market value of $237.825 billion on the Nasdaq Stock Exchange.
Read byte skipping: strictly abide by regulations to deal with technology export related business Xinhua News Agency: suggest that byte skipping should be carefully studied and carefully decided that Huawei developer conference will be held on September 10: Hongmeng OS and emui11 will be announced. Source: Netease technology report editor in charge: Qiao JunJing_ NBJ11279