Despite public criticism about a lack of transparency in some practices, Ant Financial is doing things the right way, a senior executive at the company said Wednesday.
The company — which spun off from Chinese e-commerce giant Alibaba to run the massive Alipay digital payments platform — has seen healthy demand for its asset-backed securities, and that's proof enough that it's providing sufficient transparency to investors, the executive said.
Asset-backed securities are financial instruments that are backed by underlying loans and other receivables. In this case, Ant Financial lends money to Alipay users and then packages those debts into asset-backed securities for sale to investors.
"The demand for these securities is very healthy and continuing to expand," Douglas Feagin, senior vice president and head of global business at Ant Financial, told CNBC's "Street Signs." "That, at the end of the day, is the ultimate barometer of whether you're giving enough information to investors to invest."
"I think seeing that demand is evidence that we're sharing the right kind of information with them," Feagin added.
According to news reports, Moody's Investors Service previously said that companies like Ant Financial needed to be more transparent about how such asset-backed securities are created — including their criteria for lending to underlying borrowers.