SSE Contributes to the High-quality Development of Inclusive Finance, Asset Securitization Improves the Financing Efficiency of MSMEs

Translated from Shanghai Securities News—www.cnstock.com, He Xinyi

According to statistics, since 2022, the Shanghai Stock Exchange has issued more than 500 billion yuan of financing-backed asset-backed securities (ABS) for micro, small, and medium-sized enterprises (MSMEs), which strongly supports the development of MSMEs and individual industrial and commercial households, demonstrating the determination of the capital market to serve inclusive finance.

Utilizing the function of the capital market and accurately matching the financing characteristics of MSMEs

MSMEs play a key role in innovation-driven development and industrial chain synergy. Their financing needs are "short, small, frequent and urgent". ABS products can not only raise funds efficiently to meet the needs, but also fit the risk diversification design because of the wide range of enterprise groups. For example, the "Yuanhui Series ABS" supports financing and leasing equipment for about a thousand MSMEs, and the "JD Science and Technology Shengcai No. 1 ABS" helps more than a thousand MSMEs purchase business. The scale effect of ABS in supporting financing for MSMEs is relatively significant.

Expanding the scope and increasing the types revitalize asset types, improving the efficiency of inclusive finance

In March 2025, the SSE issued the Action Plan on Further Improving the Five Key Areas of Finance to strengthen financial support for private enterprises and MSMEs. Currently, the ABS for financing support of SSE-Listed MSMEs covers a variety of asset types such as accounts receivable and financial leasing. "Hangzhou Future Sci-Tech City Intellectual Property ABS" helps specialized, sophisticated, distinctive and innovative enterprises to raise funds with intellectual property rights; "China Railway Capital Factoring Gongrui" series uses accounts receivable to improve efficiency and reduce costs; The "Meituan Business Loan" series meets the business needs of merchants. ABS indirectly injects vitality into inclusive finance by revitalizing loans to MSMEs issued by financial institutions, and also provides investment products for investors, which can achieve multiple accomplishments.

The ABS of MSMEs performs steadily, with both primary subscriptions and secondary transactions active

In recent years, ABS supported by financing for MSMEs has performed steadily, verifying the effectiveness of product design. In the primary market, financing costs have been declining year by year. For example, the priority-weighted interest rates of small and micro ABS on Meituan and JD.com have significantly decreased; in the secondary market, transactions have exceeded 100 billion yuan since 2024, and market transactions are becoming increasingly active.

In the future, the SSE will strengthen product promotion to help companies make good use of ABS; improve investment and financing docking, hold roadshows; cultivate diversified investors, improve market making mechanisms to enhance market liquidity, and continue to inject momentum into the development of MSMEs.

The above information is provided for reference purposes only and does not constitute investment advice.