360 Finance Completes Issuance of $145 Million Asset-Backed Securities
360 Finance Inc. (NASDAQ: QFIN) announced the completion of 1 billion yuan ($145 million) asset-backed securities in Shanghai today, sending its stock down 4 percent intraday Friday to $11.10 per American depositary share.
The digital consumer finance platform, backed by 360 Group, said the asset-backed securities (ABS) are listed for trading on the Shanghai Stock Exchange.
According to the disclosure, the underlying assets of the ABS are loans collected from individual consumers, which are offered by financial institutions including commercial banks and consumer finance companies through 360 Finance's platform.
Assets with AAA rating account for approximately 83 percent of total underlying loan assets, reportedly subscribed by a number of joint-stock banks, insurance and asset management firms, funds and other financial institutions.
"ABS issuance is an important funding model for us to develop long-term relationships with financial institutions, which accounted for 79 percent of funding in the first quarter of 2019," Zhiqiang He, a vice president at 360 Finance, said.
Loans facilitated by 360 Finance had a 90 day-plus delinquency ratio of 0.94 percent, with 0.2 percent due to fraud as of March, the report stated.