Transaction opens the door for institutional investors to enter Chinese trade financing market
HONG KONG, May 21, 2019 /PRNewswire/ -- Velotrade, the account receivables financing platform, announces that it is actively executing cross border trade receivables transactions involving mainland Chinese companies.
The first deal involved trade financing for a transaction between a Chinese SOE and a medical equipment manufacturer, made accessible to Velotrade through the collaboration with Qianhai Financial Assets Exchange (QEX) owned by Ping An Group. It is also the first transaction which gives institutional investors on the Velotrade platform exposure to accounts receivable in the PRC. Velotrade is the first company of its type to obtain a Type 1 Regulated Activity licence from the Hong Kong Securities and Futures Commission.
Vittorio De Angelis, Executive Chairman & Co-Founder of Velotrade commented, "This is a transformational deal for Velotrade. We are the first company offering cross-border access to Chinese invoice financing. The deal was completed very soon after we announced our SFC licensing and underscores the pace at which the company is developing. We are building out our team in Greater China, and our relationship with QEX, also thanks to the synergies given by us being part of the Ping An fintech accelerator program, means that we are now able to offer a stream of similar transactions to institutional investors on our platform. We are delighted that Velotrade has been able to open the door for foreign institutional investors to Chinese trade receivables."
Velotrade is a trusted source of non-domestic money with a streamlined onboarding process as it offers international investors on its platform an alternative channel of investment. At the same time, it also means mainland Chinese companies can now access this channel as well through QEX, which is beneficial for all parties.
The Vice General Manager of QEX, Zhan Yu Hong, commented, "Through launching cross-border trade transactions of debt-based assets such as accounts receivables factoring, QEX supports 'One Belt One Road' and the development of Guangdong-Hong Kong-Macao Greater Bay Area, to provide better services for the real economy. The collaboration with Velotrade is an excellent example."
Prior to this cross border offering by Velotrade and QEX, foreign investors have been unable to participate in onshore Chinese trade financing due to capital controls. However, the partnership between Velotrade and QEX means foreign investors can access Velotrade's regulated platform. Through QEX, investors are participating as regulated Hong Kong entities, recognised by the People's Bank of China, gaining direct access to the domestic PRC market.
Gianluca Pizzituti, CEO and Co-founder at Velotrade, added, "Since commencing operations in 2017, Velotrade has handled cross-border financing deals in Hong Kong, Mainland China, Singapore, Taiwan and Vietnam across a range of sectors, including the automotive, electronics, healthcare, retail and clothing industries. This transaction is an exciting example of our continued growth and a signal of things to come as we break into one of the largest and fastest growing markets in the world."
Velotrade's internet-based platform incorporates modern technologies to create efficiencies in the approval process that expedite financing. Additional identity verification and due diligence is conducted via the same technology platforms used by banks, meeting today's strictest compliance standards.
Velotrade is an Internet-based platform for businesses of all sizes to finance their cash flow needs using their unpaid invoices. Recognising that unpaid invoices represent a financial asset, businesses can use Velotrade to access funds by securing advance payment from participating investors on their outstanding invoices. Companies apply for inclusion on the Velotrade platform and upon approval may upload invoices for investors to finance on a per-invoice basis.
Backed by a Type 1 SFC licence, Velotrade provides leading financial institutions with access to new investment opportunities in the developing alternative asset class of Account Receivables Financing.
The company is based in headquartered in Hong Kong where it is regulated by the Securities and Futures Commission (SFC). Learn more at www.velotrade.com.
About the Shenzhen Qianhai Financial Assets Exchange (QEX)
QEX was established in March 2011. It is one of the eight exchanges that passed the inspection and acceptance of the relevant ministries and commissions of the State Council of China. In September 2015, it joined Ping An.
At present, the registered capital of the former exchange is 1 billion yuan, which has been fully paid. It is one of the financial asset exchanges with the strongest capital power, standardized operation and outstanding business characteristics in China.
The main business of the former exchanges includes: supply chain asset transfer solutions, cross-border transfer of non-performing assets, factoring assets and leased assets, trading of financial assets (including non-performing assets), and other delisting and matching businesses. For more information, please visit: www.qex.com