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Shoppers Can Buy Bad Debt Online In China


Shoppers can buy bad debt on Taobao, China's biggest e-commerce platform, Bloomberg reported.

For 4.15 million yuan or $610 thousand, customers can bid for the debt of a steelmaker from Zhejiang on the site owned by e-retailing giant Alibaba Group Holding Ltd, the report said.

China Cinda Asset Management Co., a Chinese distressed asset manager, which markets the steel company's debt, is auctioning it off to the highest online bidder after the steelmaker has failed to pay back a 9.95 million-yuan loan, including interest.

According to Bloomberg calculations, the Chinese platform, known for its bargains, typically markets more than 1 billion yuan of soured assets a day. The recent listings reportedly include a portfolio of 118 non-performing loans from some companies in Yunnan province, a villa seized by a bank in the southern canal city of Shaoxing, and a property in central Beijing that's also in default.

Last month, China Cinda had said that it's collaborating with Alibaba to set up a special section on Taobao to auction its wares.

As per the Bloomberg report, distressed assets on Taobao are typically advertised several weeks or months before the auction date. The listing for the Zhejiang steelmaker's debt says interested investors can call a local branch of Cinda for information on the offer. It includes details and photos of the collateral, i.e., a 240 square-meter apartment in the city of Hangzhou.

by RTTNews Staff Writer

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