[Preview of the Weekly] Continuous Doubts Over "Drip Irrigation" Financing, Li Xiaojia Responds This Way (AI Translation)
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- Drip Irrigation Pass, co-founded by Charles Li Xiaojia, is a unicorn valued at $1.7 billion that has invested in over ten thousand stores within two years of its establishment in August 2021. The company's Macau-based financial asset exchange (MCEX) began operations on August 3, 2023.
- The company has faced controversies regarding the nature and returns of its products, risk control challenges, and regulatory gaps. In response to these concerns, starting January 2024, Drip Irrigation Pass will disclose all underlying asset details for investments and is open to regulatory cooperation.
- Drip Irrigation Pass's business model involves Daily Revenue Contracts (DRCs) with small businesses in China, which are securitized and listed on MCEX as Daily Revenue Obligations (DROs) or portfolios of DROs called Daily Revenue Portfolios (DRPs). Li emphasizes that their current role as both player and referee is temporary until the market understands their innovative approach to financing small businesses.
文｜财新周刊 王端（发自香港）
By Caixin Weekly's Wang Duan (Reporting from Hong Kong)
"This is just a temporary arrangement," Li Xiaojia, one of the founders of Drip Irrigation Investment, said bluntly—they are not running a proprietary trading desk.
创立于2021年8月的滴灌通，短短两年已晋身估值17亿美元、投资上万家店铺的“独角兽”，滴灌通（澳门）金融资产交易所（MCEX）（下称“滴灌通澳交所”）也在2023年8月3日正式运营。
Founded in August 2021, Drip Irrigation Tong has rapidly ascended to unicorn status within a mere two years, boasting a valuation of $1.7 billion and investments in over ten thousand stores. The Drip Irrigation Tong (Macau) Financial Asset Exchange (MCEX), also known as "Drip Irrigation Tong Macau Exchange," officially commenced operations on August 3, 2023.
在高速扩张的背后，滴灌通近期卷入舆论旋涡，外界对其争议主要聚焦在三个方面：产品属性乃至收益回报率高低、围绕风险控制的困境与歧途，以及监管空白（参见本刊2023年第44期封面报道《滴灌能通否》）。
Behind its rapid expansion, Drip Irrigation Tong has recently been caught in a whirlwind of public opinion. The controversy surrounding it mainly focuses on three aspects: the nature of its products and the level of return on investment, the dilemmas and missteps concerning risk control, and regulatory gaps (see Caixin Weekly's 2023 Issue No. 44 cover story "Can Drip Irrigation Succeed?").
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