London Daily

Focus on the big picture.
Wednesday, Oct 22, 2025

HSBC teams up with Alibaba’s Cainiao logistics unit to offer quick loans to Tmall merchants in Hong Kong

HSBC teams up with Alibaba’s Cainiao logistics unit to offer quick loans to Tmall merchants in Hong Kong

Seven-day approvals for trade financing loans of up to US$500,000 offered as part of partnership. Merchants must agree to let Cainiao pass on comprehensive information to HSBC for credit assessment

HSBC has teamed up with Cainiao Network Technology, a logistics unit of Chinese e-commerce giant Alibaba Group Holding, to offer quick trade finance approvals to online merchants using the company’s Tmall platform in Hong Kong.

As part of the partnership, which was announced on Thursday, the bank will work with Cainiao to offer seven-day approvals for trade financing loans of up to US$500,000. About 1,800 Hong Kong online merchants that use Tmall, Alibaba’s e-commerce platform, are qualified to apply. These merchants will also enjoy a one percentage point interest rate discount before June 30.

The merchants will not be required to provide any collateral, or financial documents, to secure such loans. Instead, they must agree to let Cainiao pass on comprehensive information – customer background, real-time inventory and operation status – to HSBC for credit assessment.

This is the first time HSBC, which confirmed Noel Quinn as its chief executive on Wednesday, will use third-party data to approve trade finance loans. Analysts said the bank, Hong Kong’s largest, was also preparing to compete with the eight new virtual banks that will launch services in the city in the coming months. The lender will explore expanding this service to other e-commerce platforms as well, a spokeswoman said.

“We see big data and other emerging technologies as a huge opportunity to offer innovative solutions that make financing easier for our customers,” said Jeanny Ip, head of global trade and receivables finance, Hong Kong and Macau, HSBC. The partnership with Cainiao could support new economy enterprises by using big data to simplify the approvals process, she added.



Cainiao processed 1.3 billion orders involving a record 535 million packages on Alibaba’s “Singles' Day” shopping festival on November 11 last year. It is also, along with other parties, delivering masks, medical equipment and other necessities amid the Covid-19 outbreak.

“Through this digital financing solution, more merchants can easily obtain rapid loans,” said Zhao Wei, general manager of Cainiao Network Supply Chain Finance at the company. “As merchants go through a challenging period due to the Covid-19 outbreak, Cainiao Network is dedicated to driving the recovery of retail businesses and assisting businesses to resume normal operations by using our expertise in smart supply chain,” he said.

“HSBC is the first local lender to launch such a partnership with a technology company, to use big data to approve trade finance lending. It will have first-mover advantage,” said Louis Tse Ming-kwong, managing director of VC Asset Management. “Eight virtual banks are starting operations this year. The competition will be keen. HSBC and other traditional lenders will need to offer more digital banking products and services to compete for a tech-savvy younger generation of customers,” he added.



Quick loans could prove to be a lifeline for many retailers and trading companies as they navigate the current Covid-19 pandemic, which follows many months of anti-government protests last year and the 18-month long US-China trade war.

Trade finance, bread and butter for banks because of the stable income it generates, has fallen in six consequent quarters in Hong Kong, according to data provided by the Hong Kong Monetary Authority. The total amount of such lending stood at HK$452.98 billion (US$58.36 billion) in the fourth quarter last year, down 0.7 per cent from a year earlier.

The HKMA, the city’s de facto central bank, has been pushing lenders to use more financial technology to cut costs and enhance services. In October 2018, the authority launched a blockchain-based banking trade finance platform called “eTradeConnect”. The platform combines the services of 12 major banks, including HSBC and Standard Chartered bank, to enhance cross-border trade.



The Bank of East Asia is one of the lenders using this platform. “We will continue to explore new technologies and innovation to enhance efficiency and customer experience,” Thomas Tsui, the bank’s general manager and head of corporate banking, said on Thursday.

Newsletter

Related Articles

0:00
0:00
Close
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
×