Summary of Proposed Investment
Project Number
10860
Company Name
Advantage China Holdings Limited
Date SPI Disclosed
Apr 27, 2001
Country
China
Industry
Financial Markets
Projected Board Date
May 30, 2000
Status
Completed
Sector
Mortgage Services and Other
Department
Global Industry, Financial Markets
Environmental Category
C - No Impact
Previous Events
Approved : Jan 30, 2002
Signed : Feb 28, 2002
Invested : Jul 22, 2002
Project Description
Company description:
The project aims to establish a dedicated Chinese mortgage processing company. The services to be provided by the project company include: (1) offering advisory services to mortgage borrowers; (2) processing mortgage application documents; (3) performing due diligence and credit assessment; (4) obtaining legal opinions (through contracted law firms) and providing lending recommendations; etc.
The project intends to provide China with international best practice standards for mortgage processing and underwriting, thereby contributing to the healthy development of the Chinese mortgage market.
Development Impact:
The proposed project will play an important institution-building role in developing the Chinese mortgage market. It will introduce the much-needed mortgage lending know-how to the market, help improve financial institutions'' risk management in mortgage lending and thereby support the healthy development of the Chinese housing market. The proposed project brings new technologies to the housing financing market in China. The Sponsor will bring its proprietary software to China and will hence introduce up-to-date methods and technologies in the sector. This project is also expected to induce replication of the concept by other market players, thereby exercising a clear demonstration effect.
IFC Role:
IFC has helped KBH craft its expansion strategy in Asia. IFC has advised the sponsor to first expand its activities in China mainly because of their established business relations in Hong Kong, the fact that their software is already in Chinese, their good knowledge of the market and the sizeable potential of the Chinese housing market. Furthermore, IFC helped structuring the transaction itself and IFC will bring added credibility to the Company which is important for KBH, a fairly young company. This credibility will be key in the establishment of co-operations with Chinese banks who are very interested in the project and have warmly welcomed IFC''s participation in the Company.
The project aims to establish a dedicated Chinese mortgage processing company. The services to be provided by the project company include: (1) offering advisory services to mortgage borrowers; (2) processing mortgage application documents; (3) performing due diligence and credit assessment; (4) obtaining legal opinions (through contracted law firms) and providing lending recommendations; etc.
The project intends to provide China with international best practice standards for mortgage processing and underwriting, thereby contributing to the healthy development of the Chinese mortgage market.
Development Impact:
The proposed project will play an important institution-building role in developing the Chinese mortgage market. It will introduce the much-needed mortgage lending know-how to the market, help improve financial institutions'' risk management in mortgage lending and thereby support the healthy development of the Chinese housing market. The proposed project brings new technologies to the housing financing market in China. The Sponsor will bring its proprietary software to China and will hence introduce up-to-date methods and technologies in the sector. This project is also expected to induce replication of the concept by other market players, thereby exercising a clear demonstration effect.
IFC Role:
IFC has helped KBH craft its expansion strategy in Asia. IFC has advised the sponsor to first expand its activities in China mainly because of their established business relations in Hong Kong, the fact that their software is already in Chinese, their good knowledge of the market and the sizeable potential of the Chinese housing market. Furthermore, IFC helped structuring the transaction itself and IFC will bring added credibility to the Company which is important for KBH, a fairly young company. This credibility will be key in the establishment of co-operations with Chinese banks who are very interested in the project and have warmly welcomed IFC''s participation in the Company.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Ivan Ko at the following email address: ivanko@advantagemortgage.com.hk