Baosheng Science and Technology Innovation Co., Ltd.: Asset‑Backed Securities Listing Clearance
Baosheng Science and Technology Innovation Co., Ltd. (Shanghai Stock Exchange: 600973), a leading manufacturer of engineering wires and cables headquartered in Yangzhou, has received a formal no‑objection letter from the Shanghai Stock Exchange (SSE) concerning the listing and transfer of its asset‑backed securities (ABS). The announcement, issued by the company’s board on 8 January 2026, follows the approval of a receivables‑based securitisation plan that was announced in October 2025.
Key Points of the Announcement
| Item | Detail |
|---|---|
| ABS issuance plan | Total issuance capped at RMB 3 billion (30 million yuan), with the specific securitisation plan titled “Huaxia‑Ping An‑Baosheng Receivables Asset‑Backed Securities Special Plan (Advanced Manufacturing‑Technology Innovation)”. |
| SSE no‑objection letter | Issued by SSE under reference 2026‑16, confirming that the ABS meets all listing and transfer conditions. The letter remains valid for 12 months from issuance. |
| Transfer conditions | The plan is subject to a maximum issuance of RMB 992 million. The plan’s securities must be transferred in accordance with SSE regulations, and any material changes affecting transfer conditions must be reported promptly. |
| Next steps | Ping An Securities, the lead manager, is required to complete all filings and procedures within the validity period and to inform the SSE of any significant changes. Baosheng will comply with legal and disclosure obligations. |
The company’s board reiterated that the information contained in the announcement is truthful and complete, and that the board members assume joint responsibility for its accuracy.
Strategic Significance for Baosheng
Capital Structure Optimization By securitising its receivables, Baosheng can unlock liquidity tied to its credit‑worthy customers. The infusion of RMB 3 billion in the form of ABS provides working capital that can be deployed toward expansion, R&D, and debt refinancing.
Risk‑Transfer and Credit Enhancement The ABS structure is designed to isolate receivables from the company’s balance sheet, thereby reducing balance‑sheet risk and potentially improving credit ratings. This can translate into lower borrowing costs and greater confidence from institutional investors.
Market Visibility and Investor Relations The successful receipt of a no‑objection letter from the SSE signals regulatory confidence and enhances Baosheng’s visibility among investors who are increasingly interested in structured finance vehicles. The move aligns with the company’s broader strategy of tapping global capital markets.
Alignment with Global Supply‑Chain Demands Baosheng’s product portfolio—engineering wires, building cables, traffic cables, space cables, and related accessories—serves a diversified customer base spanning Southeast Asia, the Middle East, South America, Europe, and Australia. The capital generated through ABS will support the firm’s ambition to scale production and meet rising demand in emerging markets.
Financial Context
- Market Capitalisation: CNY 10.71 billion (as of 6 January 2026).
- Price‑Earnings Ratio: -40.57, reflecting the company’s negative earnings base in recent periods.
- Recent Share Price: CNY 7.81, with a 52‑week high of CNY 8.09 and a low of CNY 3.87.
- Business Focus: The company’s website (www.baoshengcable.com ) outlines its commitment to high‑quality wire and cable solutions across multiple sectors, reinforcing its positioning as a key supplier in the electrical equipment industry.
Market Reaction and Outlook
The ABS announcement has been met with a modest uptick in Baosheng’s share price, reflecting investor optimism about improved liquidity and reduced leverage. Meanwhile, broader market sentiment on 7 January 2026 was characterised by a slight rally in the Shanghai Composite Index (up 0.29 %) and a robust performance in sectors such as semiconductor equipment and electric‑grid infrastructure. Baosheng’s inclusion in the Superconducting Index—where it recorded an 8.71 % gain—underscores the sector’s momentum and the company’s relevance in high‑technology applications.
In the near term, stakeholders will watch for:
- Completion of ABS issuance – the timeline for the first tranche of securities and the corresponding cash inflows.
- Regulatory compliance – adherence to SSE reporting requirements and any updates to the securitisation plan.
- Operational deployment – how Baosheng allocates the proceeds across plant expansion, product development, and market penetration.
For a company whose roots trace back to its IPO on 16 July 2004, this move represents a significant evolution toward modern financial engineering while maintaining its core commitment to delivering advanced wire and cable solutions worldwide.
