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MI's supply chain finance asset-backed securities shelf offering of RMB10 billion received a no-objection letter from the Shanghai Stock Exchange (SSE) on March 2, making it the 1st asset-backed securities supporting new-economy enterprise supply chain finance in China. The successful launch of this project is an important measure of the SSE to support the new economy development and urge the supply chain finance to serve the real economy under the leadership of the China Securities Regulatory Commission (CSRC).
The supply chain finance asset-backed securities is a kind of project financing method, which is based on the upstream and downstream trading of core enterprises, regards the cash flow income of future trading as the guarantee, and solicits capital by issuing bonds in the capital market. In March 2017, the Central Bank of China, the Ministry of Industry and Information Technology, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission jointly issued the "Guidelines on Finance Supporting the Manufacturing Power's Construction", which pointed out that the financial department should strengthen financial support on technological innovation and technical transformation and upgrading of the manufacturing industry, actively explore more financing channels of technology-intensive enterprises and small and medium-sized manufacturing enterprises. In October of the same year, the General Office of the State Council released the "Guidelines on Promoting the Supply Chain Innovation and Application", which stipulates the key task of developing the supply chain finance actively and steadily. The 2018 Working Conference of the CSRC system also required that the whole system should orient on serving national strategies and constructing a modern economic system and strengthen the support on new technologies, new industries, new business types and new patterns.
The new economy with knowledge, technology, information, data and other new production factors as the support has been formed at a rapid pace, which has endowed new impetus to the national and social development. And MI is just a representative enterprise in the new economy manufacturing industry of China. MI has specialized in high-end smart phone, Internet TV and the smart home ecological chain construction since its establishment. While sticking to its technological innovation spirit and deeply engaging in high-end manufacturing industry, it has actively developed its supply chain finance and driven the overall development of the industry chain. MI's upstream suppliers cover over 200 enterprises in information equipment, precision electronics, biometric recognition and other fields, and some of them are leading enterprises of the sub-divided industries of the new economy manufacturing industry in China. The completion of the issuance of these asset-backed securities by stages will provide the above suppliers with new financing channels and more flexible capital sources, thus promoting the coordinated development of small and medium-sized suppliers in the industry chain and greatly support the technological research and development of the new-economy manufacturing economy and the production expansion.
The SSE aims to establish a capital market matching the socialist power with Chinese characteristics in the new era and effectively support China's economic development. The new-economy enterprises are the most creative and vigorous group in the real economy, and they become the key direction of the SSE to serve the real economy. Next, the SSE will continue to implement the guidelines of the Party Central Committee and the State Council and promote the supply chain finance in accordance with the arrangement of the CSRC, thus facilitating the development of new technologies, new industries, new business types and new patterns and serving the real economy development from multiple perspectives, in different fields and by diversified methods.
