Leading micro-lending companies are securing more low-cost financing. On July 20, it was noted that Shenzhen Tenpay Internet Finance Micro-Loan Co., Ltd. (referred to as Tenpay Micro-Loan) received approval to register a 10 billion yuan quota for targeted asset-backed notes (ABN). Driven by interest rate advantages, ABNs have become a crucial financing tool for Tenpay Micro-Loan, with its product issuances proceeding at a steady pace and its scale far outpacing peers.
However, it is evident that top-tier micro-lenders are expanding their funding channels by leveraging their strengths in user scenarios, data, and compliance, while "zombie" or inactive companies at the tail end are being rapidly cleared out under strict regulatory frameworks. As the "Matthew Effect" intensifies, these two groups face entirely different practical challenges.
Interest Rates Continue to Decline
According to the "Notice of Registration Acceptance" disclosed by the National Association of Financial Market Institutional Investors, Tenpay Micro-Loan was approved to privately issue the first series of Hefeng Asset-Backed Notes for the 2026 period. Specifically, the registered amount for the ABN is 10 billion yuan, with the quota valid for two years, and Haitong Securities Co., Ltd. acting as the lead underwriter.
Tenpay Micro-Loan was the first institution in the industry to successfully issue ABNs. As early as the beginning of 2024, its inaugural "Hexu Targeted Asset-Backed Notes" were successfully issued, marking the official opening of a channel for micro-lending companies to conduct asset securitization financing in the interbank market.
Statistics show that since 2024, Tenpay Micro-Loan has registered six tranches of ABNs totaling 55 billion yuan. The issuance of related bonds is progressing in an orderly manner. On July 20, "26 Hesheng No.8 ABN001" began trading, with the Priority A1 tranche issuing 300 million yuan at a coupon rate of 1.57%; the Priority A2 tranche issuing 580 million yuan at a coupon rate of 1.59%; additionally, the Priority B and Subordinated tranches each issued 60 million yuan. This issuance of "Hesheng Asset-Backed Notes" falls under the 10 billion yuan quota approved at the end of 2025.
It was noted that the coupon rates for the priority tranches of ABN products issued by Tenpay Micro-Loan are generally below 2% and show a continuing downward trend. Precisely because of this, ABNs have become a favored and important financing method for the company.
"The core value of ABNs lies in broadening standardized financing channels and revitalizing existing credit assets. Within the relatively limited financing channel framework for micro-lending companies, they can optimize liability structures, lower comprehensive financing costs, and support the orderly development of business," said Wang Pengbo, Chief Analyst at Botong Consulting.
Currently, Tenpay Micro-Loan has a registered capital of 15 billion yuan. As the operating entity for consumer credit products like WeChat Fenfu, its business scale consistently ranks at the forefront of the industry. Su Xiaorui, a Senior Researcher at Suxi Zhiyan, pointed out that Tenpay Micro-Loan, relying on the scenario and traffic advantages of its parent group, has an ongoing demand for external financing. The approval of the ABN registration also reflects the micro-lending industry's active efforts to strengthen its capital base and its continued positive trend.
Regarding the approval of the 10 billion yuan ABN and the intended use of the related funds, inquiries were made to TENCENT, but no response was received by the time of publication.
Steady Financing Pace
Benefiting from the prominent advantages of relatively low financing costs, high efficiency, and dispersed risks, looking across the industry, ABN financing has also become a favorite for leading micro-lending companies. Since the "restart" of ABN issuance in the micro-lending industry in 2024, micro-loan companies under several internet giants, including Meituan, Baidu, and JD.com, have all received approval for ABN quotas.
In terms of scale, Tenpay Micro-Loan is leading the pack; since 2024, Meituan SANKUAI Micro-Loan, JD Shengji Micro-Loan, and Du Xiaoman Micro-Loan have been approved for ABN quotas of 25 billion yuan, 18 billion yuan, and 10 billion yuan, respectively.
Wang Pengbo believes that leading micro-lenders are at the forefront of ABN issuance due to the combined effect of multiple factors. First, these institutions generally have scenario and data support, relatively stable asset quality, high market recognition, and advantages in issuance costs. Second, they have a high degree of compliance completion, sufficient registered capital, and meet regulatory requirements related to financing leverage. Third, their business volume is large, with ample reserves of underlying assets eligible for securitization pools, enabling sustained issuance.
Overall, the financing activities of top micro-lenders generally exhibit characteristics of "scenario binding and diversified tools." "Their financing pace is relatively steady, basically matching their own business development cycles. In terms of financing methods, they commonly use a combination of shareholder capital increases and asset securitization tools—the former supplements capital, while the latter amplifies financing leverage," Wang Pengbo stated.
The industry consensus is that future financing for micro-lending companies will evolve towards a continuous increase in the proportion of standardized financing, more accessible financing channels for compliant institutions, and a widening cost gap between leading and small-to-medium-sized institutions. In the view of Gao Chengyuan, a well-known financial writer and Dean of the Tiaoyuan Influence Research Institute, the financing scale for leading micro-lenders is expected to expand further, but with greater emphasis on matching the term structure with the asset side.
However, Su Xiaorui also mentioned that compared to the initial "restart" period, the financing pace of many micro-lending companies has already slowed, and it is expected that relevant institutions will adjust their choice of financing channels in stages.
Accelerated Clearance of Tail-End Companies
It is worth noting that the issuance of ABNs by micro-lending companies must be conducted in the interbank bond market and is registered and managed by the National Association of Financial Market Institutional Investors. According to the "Interim Measures for the Supervision and Administration of Micro-Loan Companies," issuing such standardized products requires meeting specific conditions and obtaining approval from provincial local financial regulatory authorities. As the regulatory framework becomes clearer, micro-lending companies lacking actual operational capacity are gradually exiting the market, while leading institutions are further consolidating their low-cost funding advantages through tools like ABNs, intensifying industry polarization.
On one side, leading companies are busy raising funds; on the other, the clearance of tail-end companies is accelerating. On July 16, the Shenzhen Local Financial Regulatory Bureau announced the revocation of business qualifications for eight "missing" or "zombie" micro-lending companies. It was noted that several of these institutions were already listed as having "abnormal operations."
As Gao Chengyuan indicated, the current micro-lending industry exhibits a typical "Matthew Effect": leading institutions continue to expand by relying on triple barriers of scenario, technology, and capital, while tail-end institutions are being rapidly cleared out due to high customer acquisition costs, insufficient risk control capabilities, and narrow financing channels, leading to a significant increase in industry concentration.
Therefore, for leading institutions, consolidating their industry position necessitates deepening scenario integration, strengthening risk control technology, and expanding funding channels. For small and medium-sized institutions, the "way out" lies in differentiated positioning—either by deeply cultivating vertical niche areas to become a "small but beautiful" boutique credit provider, or by collaborating with leading platforms or banks to transform into loan facilitation or technology output providers, avoiding direct competition with giants on funding costs and customer acquisition efficiency.
But in reality, this path will not be smooth sailing, with "compliance" being the primary threshold. The upcoming implementation of the "Regulations on Disclosing Comprehensive Financing Costs for Personal Loan Business" and the "Measures for the Administration of Online Marketing of Financial Products" impose mandatory requirements on loan facilitation businesses regarding transparent cost disclosure and marketing behavior standardization, respectively. The model of expanding volume by targeting high-risk, subprime customers is gone for good.
Su Xiaorui pointed out that in the coming two months, these two regulatory documents will successively enter their formal implementation stages. For micro-lending institutions that are continuing operations, they need to urgently complete compliance work and adjust related product functions during this period to avoid being unprepared during the final sprint. Small and medium-sized micro-lending institutions need to rely on deep cultivation of specific scenarios, focus on local financial service needs, and promote the tangible improvement of inclusive financial service capabilities by strengthening technological capabilities and refining operational management.
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