In the first half of the year, the asset securitization products (ABS & ABN) initiated by commercial factoring companies as the original rights holders and initiators decreased by 31.28% compared with the same period last year.
01 ABS
The share of industrial factoring increased
As of June 30, 2023, commercial factoring companies, as original shareholders, issued a total of 160 ABS products in the first quarter, with a cumulative issuance scale of RMB107.863 billion. Compared with the factoring ABS issuance scale of 134.471 billion (197 orders) in the same period in 2022, a year-on-year decrease of 19.79%.
In order to facilitate statistics, Xiaosui distinguishes commercial factoring companies into industrial factoring, third-party factoring and third-party factoring, industrial factoring is mainly commercial factoring companies within the service group, and third parties are mainly commercial factoring companies serving outside. In addition, the hybrid category is a commercial factoring company jointly initiated by the industrial category and a third party.
Table 1: Factoring ABS ranking in the previous year; Source: Wind
Xiaosui noticed that more and more industrial groups choose to set up their own factoring companies and issue ABS within the group, and the issuance scale of industrial factoring companies in the first half of the year has exceeded 52% of the ABS of factoring companies. Among the third-party factoring, Qianhai Factoring, Shenghe Factoring, Lianyirong Factoring, Sino Factoring and Xinxin Factoring ranked among the top five in the industry.
02 Factoring ABN
Nearly 50% year-on-year decline
As of June 30, 2023, commercial factoring companies, as the initiators, issued a total of 77 ABN products in the first quarter, with a cumulative issuance scale of 42.825 billion yuan. In the first quarter of this year, compared with the same period in 2022, the issuance scale of factoring ABN was 84.822 billion yuan (33 orders), a year-on-year decrease of 49.51%.
03 Trends
ABS in the urban investment supply chain became a growth highlight
Xiao Wei noted that in the field of factoring asset securitization, the following characteristics are presented:
First, the third-party factoring ABS market continues to shrink. Compared with the first quarter, the scale of factoring asset securitization products decreased somewhat, but considering the rapid increase in the proportion of industrial factoring issuance, the third-party factoring ABS market as a whole continued to contract. Xiaosui believes that this is mainly related to the customer structure of third-party supply chain ABS, and the overall performance of third-party factoring ABS is still relatively bleak due to the overall contraction of the real estate industry.
Second, ABS in the urban investment supply chain has become a bright spot for growth. Commercial factoring companies that have carried out the ABS layout of the urban investment supply chain in advance, such as Shenghe Factoring and Sino Factoring, have grown rapidly. In addition, many urban investment supply chain ABS choose to serve the supply chain ABS of their own system commercial factoring companies. At the same time, in terms of business, Xiaosui noticed that the supply chain ABS projects that initiated bidding in the first half of the year were also mainly urban investment.
Third, the price is involving. Due to the shrinking scale of finishing and the increase of new participants, factoring ABS, especially third-party factoring, is facing a certain degree of "price war", and the quotation of some projects may have been 0.1%. Xiaosui believes that low-price competition is not conducive to the long-term development of the industry, and also calls for quotations to fully reflect the value of services.