Hong Kong-based fintech company, FundPark, has obtained a three-year US$250m private loan with HSBC Holdings as the senior facility provider. This marks the second such investment received by FundPark after it received a similar US$250m private loan facility in January 2024 with Goldman Sachs as the senior facility provider [08146941].
FundPark provides mainly Chinese SMEs in the ecommerce space with working capital. FundPark's supply chain financing solutions leverage the latest technologies to offer efficient and flexible funding options for SMEs. HSBC's asset-backed security financing in FundPark comes from its US$3bn 'new economy' facility which focuses on technology and healthcare in Hong Kong and mainland China. US$200m of the funds pumped into FundPark in this latest round will come from HSBC [08146941].
HSBC's investment in FundPark follows a similar move by Goldman Sachs, indicating a calculated gamble to invest in China's private lending market. The two banks have provided a total of $500 million in loan facilities to FundPark, highlighting the growing interest in supporting Chinese SMEs and the fintech sector [08146941].