Micro Connect has announced that it has received support from HSBC Holdings for a loan facility worth US$200 million (MOP1.6 billion).
In an announcement made on Monday, the company stated that HSBC would initially provide US$50 million in credit under the asset-backed loan facility.
This is not the first time HSBC has provided financial support for Micro Connect, which operates a marketplace to raise global capital for small and medium-sized businesses in mainland China.
In December 2022, HSBC arranged a loan of up to US$25 million for Micro Connect, becoming the first bank to do so.
Charles Li, the founder of Micro Connect, expressed delight in continuing the collaboration with HSBC as a long-term financing partner.
“This new facility is crucial for expanding our business model in China and beyond, as well as helping us transform into a fully disinterested operator of MCEX.”
The Micro Connect Macao Financial Assets Exchange, or the MCEX in short, was launched officially in August 2023.
Operating on a mechanism based on daily revenue obligations, MCEX is exclusively accessible to institutional investors such as dealers, lenders, researchers, and brokers.
Micro Connect believes that its initiative could benefit over 170 million micro, small, and medium-sized enterprises, as well as self-employed freelancers in mainland China.
These businesses are estimated to contribute to 60 per cent of the country’s GDP and account for 80 per cent of job creation.
To date, around 12,300 shops across 33 provinces and 270 cities, equivalent to approximately 690 franchises, have received funding through the marketplace.
