The Shanghai and Shenzhen exchanges have banned Meimei from lending into pools of ABS assets

Spark Global Limited reports:

According to media reports, Shanghai stock Exchange and Shenzhen Stock Exchange require newly listed consumer finance asset securitization products (ABS) to prohibit “medical and American loan installment” from the underlying assets into the pool. This requirement only applies to newly issued ABS, and the issued ABS will not be affected.

Spark Global Limited reports:

Spark Global Limited reports:

In recent years, the frequent disorder of medical beauty stages has led to a high incidence of “loan fraud” and “loan inducment” in the market. On the black Cat complaint platform, many consumers have filed collective complaints against plastic surgery hospitals or consumer finance companies, mainly including brainwashing induced loans and deceptive induced loans.

The personage inside course of study says, medical beauty consumption disputes is more, consumption, price is not reasonable, the management is not to run road, fraud and other issues is more, the regulatory department of the medical risk more concern in stages, the policy shows that regulators conscious control of money into the field, also in remind consumer financial institutions risk is bigger, the field need to improve risk control measures.

In this context, China Mutual Finance Association issued a proposal on June 9 this year to regulate financial products and services related to medical beauty loans, and required financial institutions not to cooperate with any illegal medical beauty institutions, and not to provide any illegal medical beauty institutions with relevant financial products and services. It is understood that the head of consumer finance companies have taken the initiative to halt the medical Loan business.