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A comment on Xi Jinping personally halted Ant's IPO after Jack Ma snubbed government leaders. Parent comment

Re:Xi Jinping personally halted Ant's IPO after Jack Ma snub... by petra on Friday November 13, 2020 @04:10PM (#25087543)
Banks get their low collateral rate by the power of regulation.

How does a private company able to have only 2% collateral ?

[ Parent | on HN ]
Re:Xi Jinping personally halted Ant's IPO after Jack Ma snub... by Aperocky on Friday November 13, 2020 @05:17PM (#25088190)
It's effective collateral. When you can bundle the loans you just made and sell it to someone else, that's how you reduce your effective collateral.

There was no regulation on this before, leading to some very shady practices.

[ Parent | on HN ]