PrivEx plans to launch a second-hand loan platform in July

Sing Tao Daily, Hong Kong
Article Date: May 28, 2021 12:00 AM

(Reported by Sing Tao Daily) The transaction in the secondary market for corporate loans has always lacked transparency. PrivEx, which is determined to improve the transparency of the market, will be launched in July. This will be the first secondary market syndicated loan electronic trading platform in Asia. Cheng Dezhao, managing director of North Asia, said that the platform will greatly reduce the time required for loan transactions in the second-hand market from more than ten hours to a maximum of 15 minutes, and set a goal to have more than half of the second-hand loan market in Asia within three years. The trading volume is carried out through the platform.

Cheng Dezhao said that PrivEx, licensed by the Singapore Monetary Authority, is ready to launch services and is now inviting banks and other financial institutions to join as members for future transactions on the platform. He has contacted 60 banks and more than 20 fund and asset management companies in Hong Kong for this purpose. At present, more than 10 financial institutions have signed up as members, including several major international banks, and Hong Kong also has major financial institutions. Line participation.

Cheng Dezhao pointed out that the second-hand loan market transactions are carried out online through the platform, and the price and other information are clear at a glance. Under the condition that both the buyer and the seller obtain internal approval, the entire transaction process takes no more than 15 minutes, and the time required for traditional manual transactions It is as long as 13 to 19 hours. He expects PrivEx to launch a trial service in July, and with the launch of the platform, more financial institution participants and different types of loan transactions will be gradually added. The number of target financial institutions involved in the initial stage of the platform’s launch is more than 20, and it has already Discuss with another 40-50 banks in Asia about joining the platform. PrivEx aims to obtain more than 50% of the Asian second-hand loan market transaction volume within three years.

According to market data, the Asian second-hand loan market had a transaction volume of approximately US$10 billion in the year before the epidemic, while the global transaction volume was as high as US$3.25 trillion.

Tao Huaifang, a PrivEx consultant, said that the second-hand loan market has always lacked transparency. PrivEx will make relevant transactions and prices transparent, which will help increase the liquidity of the market. It is believed that after the launch of the platform, the transaction volume in the second-hand loan market will increase.