Micro Connect announces accounting rules modelled on GAAP

 jan24

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.

https://www.macaubusiness.com/micro-connect-announces-accounting-rules-modelled-on-gaap/

MELHOR EXPLICADO:

Micro Connect has released a set of financing standards for micro and small-sized enterprises.

The investment platform, founded by former Hong Kong Exchanges and Clearing (0388) chief executive Charles Li Xiaojia, said investors can reference the daily revenue sharing certificates listed on the Micro Connect Macao Financial Assets Exchange to estimate cash flow and risk.

Micro and small enterprises needing financing can determine the proportion and revenue they need to transfer to raise sufficient funds.

Launched in August 2023, MCEX is an internationally oriented income-sharing exchange based in Macau and serves clients globally. As of the end of last year, it had facilitated the financing worth nearly 4 billion yuan (HK$4.39 billion) for over 10,000 small and micro-stores.

https://www.thestandard.com.hk/section-news/section/2/259583/Micro-Connect-unveils-financing-standards

Comments

Post a Comment

Popular posts from this blog

REGRAS

Image
 (tradução do chinês) Li Xiaojia’s Drip Connect ASX, announced the rules of the exchange yesterday, and can apply for chain brand stores with 10 stores or annual revenue exceeding 5 million Li Xiaojia’s Drip Connect ASX, announced the rules of the exchange yesterday, and can apply for chain brand stores with 10 stores or annual revenue exceeding 5 million Sina Finance APP shrink font enlarge font collect Weibo WeChat share 　　Source: Ryan Capital 　　 Micro Connect Macao  Financial Assets Exchange   (  MCEX  or  MCEX for short  )  was officially put into trial operation in Macau on March 25. 　　 'Diguantong ASX'  officially released  the exchange rules of Diguantong (Macau) Financial Assets Exchange Co., Ltd.  yesterday  (  April  18)  .  Exchange  ("Drip ASX")  Rules  (Trial Implementation  )  is less than a month away. 　　 DRO   (Daily Revenue Obligation)  refers to ...
Read more

Explicado em janeiro 23

Image
Jan24 The MCEX was launched last year to trade first-of-their-kind financial products known as daily revenue obligations (DROs). The products give investors the ability to purchase part of the future revenues of China’s small and micro enterprises. Unlike shares, which require a business owner to forfeit a portion of their company, DRO’s are an accessible method of financing that requires businesses to forgo between 10 and 20 percent of their earnings in return.  Leighton Mok, the vice president of the MCEX, seen at this morning’s FMCC breakfast meeting – Photo by Kenny Fong In this way, Mok said MCEX intended to create a “new avenue of investment” for investors and a “new way to raise money” for small businesses. He said that the platform was able to collect accurate revenue data and cash flows by taking full advantage of China’s highly developed e-payment infrastructure and collaborating with leading banks and retail brands.  https://macaonews.org/news/business/macau-mcex-mi...
Read more