Fintech
HSBC leads $250 million financing for Hong Kong Fintech FundPark
China was once considered crucial to Asia’s private lending market, until the country’s recent real estate debt crisis forced many investors to withdraw their presence in the country.
However, FundPark is located in a growing area of the Chinese economy, e-commerce. Many private credit investors are focusing their attention on these positive growth areas of the Chinese economy, primarily the digital, data and consumer sectors, of which e-commerce is at the core.
This is how FundPark offers a bright spot for direct lending in China as many investors in the region shift their focus from the real estate market to various technology sectors.
FundPark’s supply chain financing solutions leverage the latest technologies to offer efficient and flexible financing options for SMEs. Its invoice and purchase order financing tools help businesses optimize cash flow and effectively manage working capital.
Its platform also connects SMEs with institutional investors, promoting a culture of greater financial stability for Asian businesses.
HSBC: Why invest in FundPark?
HSBC’s asset-backed securities financing in FundPark comes from its $3 billion “new economy” facility that focuses on technology and healthcare in Hong Kong and mainland China.
After all, HSBC has long had a presence in Hong Kong as one of its key markets.
Under the agreement, $200 million of the funds injected into FundPark in this latest round will come from HSBC.
The global bank’s New Economy Fund is committed to supporting innovation ecosystems and helping fast-growing, early-stage companies expand their services.
With a particular focus on Hong Kong, FundPark is a major beneficiary of this fund, which offers tailored debt solutions from Series A onwards to support a company’s domestic or international expansion.
In March this year, HSBC launched its $1 billion fund powering ASEAN’s digital economy and broaden the platform’s players.
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