[Ming Pao News] PrivEX, which holds an approved market operator license in Singapore, said it plans to launch a second-hand loan trading platform in July. Cheng Dezhao, managing director of North Asia of the bank, said that the current local secondary loan market mainly relies on direct contact between buyers and sellers via telephone and email. Excluding the time required to obtain internal transaction permits, the transaction itself takes 13 to 19 working hours to complete. The market lacks transparency. Unable to obtain market prices. The bank’s launch of an electronic trading platform can shorten the transaction time to 15 minutes, and platform participants can obtain information about the same lender’s debt transactions in the past to facilitate the entry of new traders.
Push the electronic trading platform to shorten the transaction time to 15 minutes
PrivEX has offices in Hong Kong and Singapore, respectively responsible for North Asia and South Asia business. Cheng Dezhao said that the bank obtained an approved market operator license issued by the Monetary Authority of Singapore at the end of 2019. The system is now ready and has contact with 60 banks. With 20 fund and asset management companies, there are currently more than 10 institutions participating in the platform, including major banks active in the lending market. It is expected to drive other banks to participate. He expects that after the trial launch of the platform in July, there will be 20 institutions participate. Participants of the platform will charge an annual fee. For the time being, the annual fee for the first year will be waived, and transaction fees will be charged to both parties of the transaction. The platform targets at least US$10 million in loans per transaction. Cheng Dezhao said that the platform will adopt an anonymous system for buyers and sellers. Buyers can search for available loans and related financial information on the platform, and ask the sellers and make bids on the platform.