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Seven Stars Cloud Group Inc. and the National Transportation Capacity Co Ltd have signed a $24 billion deal in order to fund large-scale electric bus upgrades for China’s biggest full-service operator.
Seven Stars Cloud Group, Inc., a global fintech and asset digitization services company focused on digital asset production and distribution, has announced a significant three-year deal with National Transportation Capacity Co Ltd, China’s largest electric bus full-service operator. The aim of the partnership is to issue fixed income lease financing-based products through its regulatory complaint blockchain ecosystem. According to the press release, the deal has been done for $24 billion.
Seven Stars Cloud Signs Exclusive, Ground-breaking, Three-Year $24B Deal with China's Largest Electric Bus Full-Service Operator https://t.co/okdTQQzeaO #electric #bus #China #finance #blockchain #SSC #NTS #tech #transportation #contract #deal @Forbes @Reuters @business @nytimes pic.twitter.com/ktXeac2qXz
— Seven Stars Cloud (@sevenstarscloud) August 20, 2018
Seven Stars Cloud (SSC) is aiming to become a next generation Artificial-Intelligent (AI) & Blockchain-Powered, Fintech company. By managing and providing an infrastructure and environment that facilitates the transformation of traditional financial markets such as commodities, currency and credit into the asset digitization era, Seven Stars Cloud provides asset owners and holders a seamless method and platform for digital asset securitization and digital currency tokenization and trading. SSC customizes its technology platform for various business use cases, operates the Platform-as-a-Service (PaaS), and partners with businesses that deliver core digital asset product creation.
As for National Transportation Capacity Co Ltd, it is China’s largest full-service operator for electric buses which offers sales, lease financing, a charging station network, and real-time data services.
Under the terms of the deal, SSC will provide two distinct financing campaigns, one in China and the second across global markets, through its global strategic alliance network. “For the China-based financing, SSC will conduct financing activities through the sale of fixed income products to raise 60 Billion RMB (approx. $8.75B) over three years (an average of 20B RMB / $2.9B per year). For the global markets financing activities, SSC will exclusively provide both fixed income and asset digitization products to raise $15B over three years (an average of $5B per year),” the press release states.
The deal aims to provide fixed income lease financing-based products to fund upgrades of China’s buses and make them electric by 2021. The market size for the mandatory replacements and upgrades to achieve fully-electric bus operations in China is estimated at 1 trillion RMB (approx. $145 billion).
Following the announcement, SSC shares soared 149% in premarket trade on Monday. Bruno Wu, Chairman and CEO of Seven Stars Cloud, said:
“This is a truly ground-breaking deal globally for blockchain-based fintech companies to gain such a large-scale, asset-backed, contract. It represents a new era and a paradigm shift in the way in which we view asset-based financial products; and it will serve as a window to the world on how asset value and liquidity can be unlocked by traditional industries as we take fixed income products into the digital era. By combining regulated financial infrastructure, and the market confidence in asset-based products, with AI-enhanced risk management and the dynamics of blockchain-enabled fractionalization, securitization, tokenization, and global trading of token-based offerings, we are delivering the next-generation of financial products which will be compelling for both asset-rich industries and investors alike. It’s an exciting time for SSC, and we’re extremely pleased and honored to partner with NTS on this offering.”
Jihong Huang, President of National Transportation Capacity Co Ltd, is excited about the deal as well:
“A combination of SSC’s Blockchain and AI technologies, combined with our shared mission for unlocking both liquidity and enterprise value through asset digitization, will result in a significant transformation of the entire lease financing-based fixed income market. Each of the leading ten bus manufacturers in China strongly back NTS in this initiative, and the success of this transaction with SSC will place asset-backed digital offerings firmly on the map.”
Chinese authorities have put their mind on blockchain regulation. They are going to standardize the blockchain sector and form National Blockchain Standardization Committee by the end of 2018. Moreover, China wants to foster blockchain as a core technology for the new digital economy, and this decision has been put forward by Xin Guobin, the deputy director of China’s Ministry of Industry and Information Technology.