Chinese peer-to-peer lending platform Hexindai (NASDAQ: HX) announced on Wednesday it has formed a funding sources partnership with Kunming Aotou Economic Information Consulting Co., Ltd. (Kunming Aotou).
Hexindai reported that through this agreement it will assess borrowers that are using its risk management and credit assessment capabilities before referring them to Kunming Aotou which will facilitate the loans through a trust fund. An initial aggregate principal amount of RMB30 million will be distributed. While sharing more details about the partnership, Xinming Zhou, CEO of Hexindai, stated:
“Our partnership with Kunming Aotou is another significant step in our strategy to diversify our funding sources with the addition of institutional investors. We are excited to begin working with Kunming Aotou where we will benefit from our combined credit assessment capabilities and base of high-quality borrowers. Diversifying funding sources will further reduce our funding costs and provide us with the flexibility needed to navigate a challenging market environment.”
Zhou went onto add:
“We look forward to supporting the long-term sustainable development of consumer finance industry in Southwest China. We expect this partnership to be the first step in our efforts to capture the market opportunities created by the local consumer finance boom and hope to seek more cooperation in the future.”