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HSBC
BusinessBanking & Finance

HSBC teams up with Alibaba’s Cainiao logistics unit to offer quick loans to Tmall merchants in Hong Kong

  • Seven-day approvals for trade financing loans of up to US$500,000 offered as part of partnership
  • Merchants must agree to let Cainiao pass on comprehensive information to HSBC for credit assessment

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According to HSBC, its partnership with Cainiao could support new economy firms by using big data to simplify the approvals process. Photo: Roy Issa
Enoch Yiu

HSBC has teamed up with Cainiao Network Technology, a logistics unit of Chinese e-commerce giant Alibaba Group Holding, to offer quick trade finance approvals to online merchants using the company’s Tmall platform in Hong Kong.

As part of the partnership, which was announced on Thursday, the bank will work with Cainiao to offer seven-day approvals for trade financing loans of up to US$500,000. About 1,800 Hong Kong online merchants that use Tmall, Alibaba’s e-commerce platform, are qualified to apply. These merchants will also enjoy a one percentage point interest rate discount before June 30.

The merchants will not be required to provide any collateral, or financial documents, to secure such loans. Instead, they must agree to let Cainiao pass on comprehensive information – customer background, real-time inventory and operation status – to HSBC for credit assessment.

This is the first time HSBC, which confirmed Noel Quinn as its chief executive on Wednesday, will use third-party data to approve trade finance loans. Analysts said the bank, Hong Kong’s largest, was also preparing to compete with the eight new virtual banks that will launch services in the city in the coming months. The lender will explore expanding this service to other e-commerce platforms as well, a spokeswoman said.

“We see big data and other emerging technologies as a huge opportunity to offer innovative solutions that make financing easier for our customers,” said Jeanny Ip, head of global trade and receivables finance, Hong Kong and Macau, HSBC. The partnership with Cainiao could support new economy enterprises by using big data to simplify the approvals process, she added.

Cainiao processed 1.3 billion orders involving a record 535 million packages on Alibaba’s “Singles' Day” shopping festival on November 11 last year. It is also, along with other parties, delivering masks, medical equipment and other necessities amid the Covid-19 outbreak.

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