National departments policy recommendations for "giving full play to the role of supply chain finance "

Today I received a notice from the logistics and supply chain finance branch of China Federation of logistics and procurement, and as a member of the think tank, we made policy suggestions to national departments. I plan to offer these policy recommendations: introduce low interest rate foreign funds, cooperate with foreign factoring companies, transfer loss payee from Sinosure and PICC, cooperate with foreign Fintech, relax the requirements of SAFE, international trade credit insurance companies open business scope; standardized drafts of domestic factoring, cross-border transfer of trade financing assets, gradual opening of international credit rating agencies, internationalization of RMB assets etc. 

March 6, 2020

David Gan

National departments policy recommendations for "giving full play to the role of supply chain finance and stabilizing the supply chain of returning to work and production"

Logistics and supply chain finance branch of China Federation of logistics and purchasing:

I will provide the first-line information for "play the role of supply chain finance, stabilize the return to work supply chain". There have been a lot of suggestions on domestic trade before. This document focuses more on the introduction of foreign investment and export trade.

1 Broaden the channels of refinancing and reduce the interest rate of refinancing

Before that, the state issued three relevant policies:

1.1 Hainan Branch of safe has issued the notice on supporting Hainan free trade port to build foreign exchange Innovation Business Policies on February 10, 2020, many of which are the first provincial pilot projects in China. The pilot project for the transfer of domestic credit assets to foreign countries has been officially implemented. At the same time, it can also attract more domestic and foreign well-known cross-border asset transfer platforms to settle in Hainan. Compared with direct transfer between banks, the flexibility of credit asset transfer is greatly increased through asset trading platform. But at present, it is limited to bank trade financing assets.

Suggestion: continue to open trade financing assets of non-bank financial institutions, such as allowing factoring company's trade financing assets to transfer across borders through well-known cross-border asset transfer platforms at home and abroad, introducing foreign capital, and expanding refinancing channels, so as to realize the internationalization of RMB assets. At present, the global economy has entered the era of great easing, low interest rate is the general trend, many European and American countries have entered the era of negative interest rate.

1.2 On December 26, 2019, in order to further regulate the foreign trade financial business behavior of the banking and insurance industry and guide the banking and insurance institutions to effectively play the role of financial services in stabilizing foreign trade, the foreign exchange bureau of the Ministry of Commerce of CBRC jointly issued the guidance on improving foreign trade financial services.

Suggestions: 1.2.1 China Export & credit insurance company and China People's Property Insurance Co., Ltd. should strengthen cooperation with foreign factoring companies, transfer the loss payee to foreign factoring companies, so as to broaden the refinancing channels. At present, China's export credit insurance company only signs compensation agreements with a few domestic banks, while foreign factoring companies can only sign insurance beneficiary transfer agreements with foreign trade credit insurance companies, and domestic export enterprises that purchase export credit insurance of China's export credit insurance company cannot recover accounts receivable in advance.

1.2.2 Gradually open the business scope of foreign trade credit insurance companies.

1.3 On February 14, 2020, the people's Bank of China issued a notice on the public solicitation of opinions in the management measures for standardized notes (Draft for comments). As a result, 12.6 trillion electronic notes will be converted from non-standard to standardized creditor's rights assets.

Suggestion: foreign investors can invest in standardized note assets. Standardized bills also solve the problem of core enterprises' cooperation in confirming rights.

2 Cooperation interface between supply chain Fintech enterprises

Suggestions: vigorously introduce and support foreign supply chain Fintech enterprises to enter China, exchange and cooperation with each other, incubator accelerator and other supporting enterprises include foreign-funded enterprises.

3 Establish credit evaluation system and expand supply chain financing channels

On January 28, 2019, the business management department of the people's Bank of China issued a notice saying that S & P global Inc., a wholly-owned subsidiary of S & P global Inc., will be put on record. S & P has been approved to officially enter China to carry out credit rating business. Standard & Poor's is the first pure foreign institution to obtain credit rating license.

The industry and foreign investors hope that foreign credit rating agencies can play the "catfish effect", and also hope that more international rating agencies will enter China, marking that China's credit rating market will form a pattern of competition between foreign credit rating agencies and domestic credit rating agencies. Although it remains to be tested whether foreign rating agencies can adapt to China's market environment and give full play to their advantages in rating methodology, fair competition and survival of the fittest among agencies will force domestic credit rating agencies to gradually grow up in the benign competition, promote the continuous improvement of China's credit rating market in rating technology and service quality, and also contribute to the financing cost of enterprises Overall decline.

March 2, 2020

Notice on soliciting policy suggestions of "giving full play to the role of supply chain finance and stabilizing the return to work supply chain"

Dear special researcher of think tank: 

Coordinate efforts to promote epidemic prevention and control and economic and social development, precise and orderly return to work and re production is chairman Xi Jinping's major strategic arrangements for the development of the epidemic situation. For real enterprises, especially small and medium-sized enterprises, in order to achieve orderly resumption of production and sustainable development after resumption of production, in a certain period of time, they will face practical difficulties such as poor connection of industrial chain, financial difficulties and steep increase in operating costs. It is an important task to repair the ecological environment of industrial supply chain.

In this context, the logistics and supply chain finance branch of China Federation of logistics and procurement (hereinafter referred to as "CFLP"), as an industry association in the financial field, intends to put forward policy suggestions to the relevant departments of the state, further strengthen the support of supply chain financial policies, play the important role of supply chain finance in stabilizing the operation of industrial supply chain, and help the entity enterprises to resume work And achieve sustainable development. To this end, we hereby solicit opinions and suggestions from the special researchers of think tanks. Your opinions and suggestions are very important to us and will serve as an important reference for our policy suggestions.

The relevant matters are hereby notified as follows:

1、Solicitation content

Focusing on the novel coronavirus epidemic impact and impact on enterprise production and operation, based on analysis and judgment, we put forward targeted financial support policy recommendations to relevant government departments. Proposed direction (for reference only):

1. Broaden the channels of refinancing and reduce the interest rate of refinancing

For non-bank financial institutions, the paper puts forward the refinancing support policies for their assets to improve the enthusiasm of such financial institutions. In the same period, the supporting stage reducing interest rate policies will guide such financial institutions to benefit the entity enterprises, effectively reduce the financial cost of the entity enterprises, and strengthen the support for the resumption of small and medium-sized enterprises in a broader range.

2. Strengthen credit increasing measures and reduce credit increasing cost

For local or industry credit enhancement institutions, corresponding policies are put forward to strengthen the support of credit enhancement for small and medium-sized enterprises. At the same time, optimize the credit increase approval process and procedures, and in a certain period of time, reduce the credit increase cost by reducing the credit increase cost, so as to support SMEs to return to work comprehensively.

3. Encourage core enterprises to cooperate in power confirmation and promote supply chain financing business

In view of the supply chain financial business in the A / R and A / P links, this paper puts forward the policy measures of coordinating the core enterprises to cooperate with the confirmation of rights, so as to smoothly complete the supply chain financial business. In addition, to improve the enthusiasm of core enterprises to participate in the supply chain financial business and deepen the participation of core enterprises, more powerful policy support is needed.

4. Cooperation interface between supply chain financial institutions and Fintech Enterprises

Put forward relevant measures to encourage more in-depth integration of financial technology and supply chain financial business. As well as the policies that should be supported for the Fintech enterprises that have innovation in the field of supply chain financial business and practice effectively.

5. Establish credit evaluation system and expand supply chain financing channels

According to the criteria of financing ability evaluation system, and based on the stability and self-discipline of the supply chain ecological environment of "production, supply and marketing" of the entity enterprises, the supply chain financing based on "integrity" is realized, especially for the supply chain ecology of "closed-loop" formed by the entity enterprises, which is connected with the upstream and downstream supply chain financing, so as to improve the ecological activity of the supply chain of the entity enterprises and realize Virtuous circle, fast drive return to work and production.

China Federation of logistics and purchasing

Logistics and Supply Chain Finance Branch