Micro Connect is a financial technology startup founded in Hong Kong by Charles Li in 2021, with the backing of Li Ka-shing and Adrian Cheng. The company aims to provide financing for micro and small businesses across mainland China and operates a platform for trading revenue obligations.
Services MicroConnect provides data-driven micro-financing to small businesses, with a particular focus on China. It offers them customized financial products and services. The company utilises information technology to collect data from a network of small businesses in order to assess their financial health and growth potential.
Additionally, MicroConnect has developed a unique financial service in which they package the revenues of small businesses and sell them as financial instruments, known as "Daily Revenue Obligations (DROs)". This innovative approach involves securitising the revenue streams of small businesses, such as noodle shops and karaoke bars.
The packaged revenues are then sold to investors on the Micro Connect Macau Financial Assets Exchange (MCEX), the first licensed global exchange for this new asset class. The MCEX platform enables global investors to invest in China's micro and small businesses by purchasing financial instruments backed by daily revenues, indirectly providing capital to these businesses.
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