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IQiyi's 3 Billion Yuan IP Supply Support Plan Approved by SSE

Anthony Russo 2019-09-19 01:30 AM

Entertainment platform iQiyi Inc. (Nasdaq: IQ) has announced that its Intellectual Property Supply Chain Finance Asset-backed Support Plan, secured by CITIC Securities, has received approval from the Shanghai Stock Exchange (SSE) for 3 billion yuan. 

The approval from the SSE marked the first ABS shelf offering of intellectual property supply that gets approval in China, according to iQiyi's statement on Tuesday. 

The company, which focuses in on gaming, e-commerce and ticket services, said its plan will expand its own financing channels, along with signaling the optimization of the capital chain in the industry.

“The issuance of the asset-backed securities will accelerate the flow rate of funds in the entire industry as it evenly spreads the risk and allows partner production enterprises to get their investment back in a shorter period of time,” iQiyi said in its statement.

The company also said, “This enables partner production companies to continuously produce new quality content throughout the cycle.”

The stock in iQIYI was trading 2 percent lower Wednesday morning, at $18.76 per American depositary share.