Micro Connect has unveiled another major component of its pet project designed to raise global capital for small and medium-sized businesses in mainland China.
Under the initial arrangements made for the Micro Connect Macao Financial Assets Exchange, the MCEX Market Accepted Protocol (MAP), as announced at a press conference on Tuesday, is devised to correspond to the Daily Revenue Contract (DRC) or Daily Revenue Obligation (DRO).
According to the company, a daily refreshable and publishable MAP, similar to the set of rules widely known as generally accepted accounting principles, provides a comprehensive overview of key static information linked to a DRC.
The information includes details such as the contract’s geographical region, industry classification, listing date, anticipated collection amount, and contract duration.
In addition, the MAP also serves as a standardised communication framework for data preparation and disclosure, regardless of the business’s geographic location or nature.
Presenting the latest update on the establishment of the marketplace, Charles Li, Micro Connect co-founder, said that as many as 12,600 DROs had been issued, amounting to nearly RMB4.1 billion (MOP4.65 billion/ US$580 million).
Close to 1.1 billion investors have been involved in providing financial support for as many as 11,752 brick and mortar shops since the marketplace’s inception.
“Every year, close to nine million new shops open. We’re talking about close to RMB10 trillion in capital expenditure needed every year, which needs to be pumped back into the system just to keep the shops open,” said Li.
The Micro Connect Macao Financial Assets Exchange was officially launched in August 2023, more than a year after the creation of the Micro Connect Leadership Fund, which was designed to jumpstart the project.
