Policy and Economic Context - In 2024, China's economy is stabilizing amid weak global growth and insufficient domestic demand, prompting the central bank to enhance monetary policy support for small and micro enterprises[6] - The People's Bank of China reduced the reserve requirement ratio by 1 percentage point, releasing approximately 2 trillion yuan in long-term funds[12] Microenterprise Loan ABS Market Performance - In 2024, 13 microenterprise loan ABS products were issued, totaling 65.52 billion yuan, a decrease of 12.61% compared to 2023[17] - The issuance rate for microenterprise loan ABS products showed a downward trend, with AAAsf securities ranging from 1.90% to 2.47%[22] Asset Performance and Trends - The cumulative default rate for microenterprise loan ABS products increased, with rates ranging from 0.00% to 4.50% by the end of 2024[37] - The overdue rate exhibited a V-shaped trend, initially rising before declining and then increasing again towards the end of the year[35] Market Activity and Structure - The secondary market transaction volume for microenterprise loan ABS products was 6.27 billion yuan, a decrease of 27.71% from 2023, with a turnover rate of 14.05%[25] - Most products issued in 2024 featured layered structures, with a focus on reducing early repayment risks through handover amortization methods[34] Loan Characteristics - The average outstanding principal balance for microenterprise loans decreased to 1.5032 million yuan in 2024, down from 1.7063 million yuan in 2023[30] - The weighted average remaining term of the underlying assets increased to 12.97 months, compared to 11.40 months in 2023[29]