1. Report Industry Investment Rating - No information provided in the given content 2. Core Viewpoints of the Report - In 2025, under the dual pressure of increased external environmental uncertainty and internal structural contradictions, small and micro - enterprises faced operational challenges. Despite continuous macro - policy support for inclusive small and micro - enterprise loans, the growth rate of such loans slowed down, and the issuance of small and micro - enterprise loan ABS products declined in terms of both the number of issues and scale. The cumulative default rate of these products rose at the end of the year, indicating pressure on asset quality. The credit performance of small and micro - enterprise credit assets and the future issuance of small and micro - enterprise loan ABS products in the credit asset securitization market remain uncertain [3][4][33] 3. Summary by Relevant Catalogs Policy - In 2025, in the face of a complex situation with deepening external environmental impacts and prominent domestic supply - demand contradictions, the macro - policy implemented a moderately loose monetary policy, maintained the intensity of support for inclusive small and micro - enterprise loans, and optimized the loan structure. Multiple departments issued a series of policies to support small and micro - enterprises, aiming to increase financing supply, reduce costs, and improve service quality. The new general tone of "ensuring quantity, improving quality, stabilizing prices, and optimizing structure" was established [4][5] - The scale of inclusive small and micro - enterprise loans continued to grow, with the balance increasing from 29.40 trillion yuan in 2023 to 36.57 trillion yuan in 2025, and the proportion in total loans rising from 12.37% to 13.45%. However, due to economic slowdown and policy transformation, the growth rate of loans decreased from 23.53% in 2023 to 11.05% in 2025 [6] - The central bank cut the reserve requirement ratio and the loan prime rate (LPR) in 2025, leading to a stable decline in the average interest rate of newly issued inclusive small and micro - enterprise loans. In June 2025, the average rate was 3.48%, a decrease of 0.66 percentage points compared to the previous year [9] Issuance - In 2025, 10 small and micro - enterprise loan ABS products were issued in the inter - bank market, with a total issuance scale of 58.645 billion yuan, a year - on - year decrease of 23.08% in the number of issues and 10.49% in scale. Meanwhile, 117 asset - backed notes (ABN) products with underlying micro - enterprise loans were issued, with a scale of 101.93 billion yuan, a year - on - year increase of 27.94% in the number of issues and 44.44% in scale [12] - The issuance of small and micro - enterprise loan ABS slowed down due to the loose market liquidity and the slowdown of banks' inclusive small and micro - enterprise loan growth, while the issuance of micro - enterprise loan ABN was more active because of the strong financing and cost - optimization needs of Internet banks and non - bank institutions [12] - In terms of issuing institutions, in 2025, there were 7 institutions issuing small and micro - enterprise loan ABS products. State - owned banks remained the dominant issuers, with 1 state - owned bank issuing 4 products worth 49.612 billion yuan, accounting for 84.60%. The concentration of issuing institutions has increased in recent years [14] Issuance Interest Rate - In 2025, the issuance interest rates of small and micro - enterprise loan ABS products generally showed a downward trend. The interest rate range of senior (AAAsf) securities was 1.58 - 1.96%, and that of sub - senior (AA + sf) securities was 1.91 - 2.19%, with a narrower range compared to 2024. The issuance cost of these products was at a historical low [17] - Compared with the 1 - year ChinaBond Medium - and Short - Term Note Yield, the spread range of AAAsf - rated securities of small and micro - enterprise loan ABS products was - 11 - 20 basis points, and that of AA + sf - rated securities was 21 - 30 basis points, with a narrower spread range compared to the previous year [17] - The issuance interest rates of small and micro - enterprise loan ABS products were generally lower than those of micro - enterprise loan ABN products because banks had an advantage in capital cost over Internet banks and non - bank financial institutions [17] Secondary Market - In 2025, the trading volume of small and micro - enterprise loan ABS products in the secondary market was 9.388 billion yuan, a 49.61% increase compared to 2024. The trading frequency was 43 times, with an average transaction amount of 218 million yuan. The turnover rate was 29.30%, slightly higher than the 2025 credit ABS market turnover rate, but the trading activity still needed to be improved [20] - The "Feichi Jianpu" series of products issued by China Construction Bank had a significant increase in trading activity, with the trading amount increasing by 165.27% compared to the previous year, accounting for 84.57% of the total secondary - market trading amount of small and micro - enterprise loan ABS products in that year [20] Asset Pool Characteristics - In 2025, the average single - household unpaid principal balance of the underlying assets of small and micro - enterprise loan ABS products increased. The proportion of underlying assets with mortgage guarantees was over 90%, and the average single - household unpaid principal balance was 1.7682 million yuan, higher than in 2024 [22] - The weighted average remaining term of the underlying assets decreased slightly to 12.20 months in 2025 from 12.96 months in 2024, remaining relatively short [23] - The weighted average interest rate of the underlying assets continued to decline and remained at a low level. The average interest rate of the asset pool of products issued by state - owned banks was 3.73%, that of joint - stock banks was 4.14%, and that of regional banks was 4.58% [23] Performance during the Continued Period Default Rate - By the end of 2025, the cumulative default rate of small and micro - enterprise loan ABS products showed an upward trend, ranging from 0.00% to 4.53%. The cumulative default rate of products issued by state - owned banks was between 0.00% and 3.43%, that of joint - stock banks was between 0.00% and 4.53%, and that of regional banks was between 0.00% and 4.50% [26] - For the 10 small and micro - enterprise loan ABS products issued in 2025, the cumulative default rate by the end of 2025 was between 0.00% and 1.67%. The cumulative default rate of products issued by state - owned banks was between 0.00% and 0.47%, that of joint - stock banks was between 0.00% and 1.67%, and that of regional banks was between 0.00% and 0.01% [29] Prepayment Rate - In recent years, the prepayment rate of small and micro - enterprise loan ABS products has been declining but remains at a high level. In 2025, except during the peak periods of small and micro - enterprise capital demand such as the Spring Festival and the end of the year, the annualized prepayment rate was generally above 50% [31] - There were significant differences in prepayment rates among products due to the small number of issued products. Among issuing institutions, the average prepayment rate of products issued by state - owned banks was the highest, while that of joint - stock banks was the lowest [31][32]