Core Insights - The issuance scale of corporate Asset-Backed Securities (ABS) has exceeded 1 trillion yuan in 2023, reaching 10,321 billion yuan by the end of September, marking a year-on-year increase of over 20% [1][8] - This level is approaching the total issuance scale for the entire year of 2024, which is projected to be 12,483 billion yuan, and represents the first time since 2022 that the number of corporate ABS issued has surpassed 1,000 in September [1][8] Issuance Trends - A total of 1,142 corporate ABS have been issued as of September 2023, with significant growth in large-scale issuances, particularly those exceeding 2 billion yuan, which have seen a year-on-year increase of 17.65% [1][5] - The largest single issuance this year is the "CITIC Financial Asset Yunfan Phase 1" plan, with a scale of 10.01 billion yuan, achieving the lowest cost and narrowest spread among similar products [6][8] Types of ABS - Corporate ABS is primarily issued by non-financial enterprises and is regulated by the China Securities Regulatory Commission, while credit ABS is issued by financial institutions and circulates mainly in the interbank market [5][8] - Traditional underlying assets for ABS include accounts receivable, lease rentals, trust loan rights, small loans, and consumer loans, with over 800 products issued in these categories, accounting for more than 70% of total corporate ABS issuance [6][8] Innovation in ABS - New types of ABS based on data assets, intellectual property, and low-altitude economy have emerged, with the recent issuance of the "Huaxin-Xinxin Data Asset Phase 1" plan marking a significant development in data asset securitization [7][8] - Data asset ABS allows companies to convert dormant data resources into financing, particularly benefiting technology firms with insufficient collateral [7][8] Market Dynamics - The ABS market is experiencing a surge in both issuance and secondary market activity, driven by strong demand from small and medium-sized enterprises seeking to optimize their financing structures [8][9] - Regulatory support and the introduction of new fundraising mechanisms are expected to further expand the ABS market [8][10] Investor Participation - Institutional investors, including trust institutions and banks, are the primary participants in the ABS market, with trust institutions increasing their holdings significantly [10][11] - Public funds have also begun to increase their ABS holdings, with a notable rise in the number of funds participating [11][12] Yield and Risk - ABS products typically offer higher yields compared to standard bonds, with the average coupon rates for different tiers of ABS varying significantly, reflecting the risk-return profile of the underlying assets [14][16] - The current low-interest-rate environment has made ABS an attractive investment option for institutional investors, providing a unique opportunity for yield enhancement [14][16]

Core Insights - The article discusses the evolution and current state of intellectual property asset-backed securities (ABS) in China, highlighting its significance in financing for small and medium-sized technology enterprises [1][2][10] - It emphasizes the growth of the market, with a cumulative issuance scale exceeding 200 billion yuan by June 2025, and the increasing recognition of intellectual property as a valuable asset [1][10] Market Development - The first intellectual property ABS in China was approved in December 2018, and as of June 5, 2023, at least 12 intellectual property ABS have been issued this year, totaling 1.356 billion yuan [1] - In 2024, the issuance of intellectual property ABS products reached 57, with a total scale of 9.806 billion yuan, marking a year-on-year increase of 25.97% [2] Institutional Concentration - The majority of intellectual property ABS issuers are small loan companies, commercial factoring companies, and financing leasing companies, with a high concentration among the top five issuers, accounting for 74.68% of the total issuance [2][4] - Shenzhen's small loan companies dominate the market, with Shenzhen Zhongxiaodang and Shenzhen Gaoxin Investment holding a combined market share of 58.80% [2][4] Product Characteristics - Intellectual property ABS typically have smaller issuance sizes, around 100 million yuan, and primarily serve smaller enterprises, reflecting a certain degree of inclusive finance [4][8] - The underlying asset types for intellectual property ABS are diversifying, including agricultural IP, new energy vehicle IP, and digital currency IP [5] Financing Channels - The article highlights the exploration of cross-border financing channels for intellectual property ABS, particularly in the Greater Bay Area, allowing companies to leverage their intellectual property for overseas financing [5][6] Operational Standards - The operational model for intellectual property ABS has become more standardized, with established processes for small loan companies to provide funding and guarantee enhancements [7][8] - The Shenzhen model of intellectual property ABS is characterized by state-owned enterprises leading the initiative, government subsidies reducing financing costs, and active market participation [10][12] Market Challenges - Despite the growth, the intellectual property ABS market is still in its early stages, with limited investor recognition and liquidity issues affecting issuance and trading [13][14] - Challenges include the lack of unified standards for intellectual property valuation and the need for improved risk management practices [14][15]