Core Viewpoint - The leading consumer finance institution, Ma Shang Consumer Finance, is actively seeking to raise funds through the issuance of asset-backed securities (ABS) to support its operations and enhance its market competitiveness [1][7]. Group 1: ABS Issuance Details - Ma Shang Consumer Finance plans to issue the "An Yi Hua" 2025 second phase personal consumption loan ABS with a total scale of 1 billion RMB, scheduled for issuance on June 17, 2025 [2]. - The ABS structure includes 775 million RMB in priority A shares, 75 million RMB in priority B shares, and 150 million RMB in subordinated shares, with a total of 1 billion RMB [4]. - The asset pool for this ABS involves 233,700 borrowers with a total initial contract amount of 1.18 billion RMB, and the average outstanding principal balance per borrower is 4,300 RMB [5][6]. Group 2: Industry Trends and Performance - In 2025, four consumer finance institutions have issued a total of 8.458 billion RMB in ABS, showing growth compared to the previous year [1][8]. - The consumer finance industry is experiencing a trend of financing polarization, with some institutions successfully issuing ABS while others struggle to do so [9][10]. - Regulatory support has been a significant factor in the growth of ABS issuance, with policies encouraging consumer finance companies to expand their funding capabilities [8][12]. Group 3: Financial Performance of Ma Shang Consumer Finance - As of the end of 2024, Ma Shang Consumer Finance reported total assets of 65.56 billion RMB, total liabilities of 52.14 billion RMB, and net profit of 2.281 billion RMB [6]. - The company’s loan issuance decreased by 8.57% in 2024 compared to 2023, indicating a reduction in lending activity [6]. - The non-performing loan ratio remained stable at 2.49% as of the end of 2024, with a capital adequacy ratio of 14.25% [6][12]. Group 4: Importance of Low-Cost Funding - Access to low-cost funding through ABS is crucial for consumer finance companies to enhance their market competitiveness and pricing power [12][13]. - The ability to continuously secure low-cost funds is a key dimension for measuring the competitiveness of consumer finance companies in the market [12][13]. - The current environment emphasizes the need for consumer finance companies to diversify their funding sources to strengthen their financial position [12][13].