For popular domestic lending platforms such as Alibaba Group Holding Ltd.’s Ant Financial Services Group, the pandemic has actually led to more business. Chinese lenders sought out the firm’s digital technology after they were forced to shutter branches, and its MYbank, which cut interest rates, is on track to issue a record 2 trillion yuan of new loans to small- and mid-size companies this year, up almost 18% from 2019.
In its Hong Kong IPO, Home Credit sought a valuation of 10 billion euros, people familiar with the matter said at the time. When investors pushed back, the company decided to pull the deal. Tomanek, the spokesman, said there are no plans to revisit a listing.
Kellner’s business in China has caused some controversy back home. Late last year, PPF and Home Credit sought to fend off allegations in local media that the lending arm had hired a public relations agency to help improve China’s image in the country. Home Credit said its goal was only to “rationalize the public debate” and “weaken extreme positions in the public sphere” by presenting facts about doing business and life in the Asian nation.
PwC’s Chang remains confident that Home Credit and its owner will recover. Domestic consumption will be a major driver for China’s economy, and the industry holds promise for the medium to long term, he said. A September report by the National Institution for Finance & Development projected rapid growth in the next five years, with consumer loans comprising more than 25% of China’s credit-loan market.
“They are from eastern Europe, they saw how an economy develops, so they know how to reach their customers and how to design products for different scenarios like buying a new smartphone,” Chang said of Home Credit.
This article was provided by Bloomberg News.