On Apr. 30, CHI CB issued a notice on supply chain finance business.
CHI CB issued a notice on market regulation on standardizing supply chain finance business and guiding supply chain information service institutions for SME financing.
It also issued transcript of Q&A re questions asked by reporters on the background of the issuance of this notice, how it contributes to protecting SMEs' rights and interests, and its approach for regulating electronic voucher business of accounts receivable.
Outline of Notice
The development of supply chain finance should fully implement the new development concept, deeply grasp the political and people-oriented nature of financial businesses.
Encourage commercial banks to develop diversified supply chain financial models.
Core enterprises in the supply chain must pay SMEs in a timely manner, protect their legitimate rights and interests, reasonably share the cost of supply chain financing.
Supply chain information service institutions should provide information services such as collection/integration of supply chain information in a legal, fair manner, effectively safeguard legitimate rights and interests of all participants in supply chain finance.
Banks should improve credit risk management of supply chain finance, strictly fulfill their responsibilities such as loan investigation, risk assessment, credit management.
Banks, supply chain information service institutions should standardize the management of supply chain financial business cooperation in a fair and transparent manner, strengthen the management of supply chain financial information data.
For providing electronic voucher financing services for accounts receivable, banks shall strictly review trade background materials, effectively identify/prevent fictitious trade backgrounds to siphon bank funds and fund transactions without trade backgrounds.
The payment period of electronic vouchers of accounts receivable should be within 6 months and no longer than 1 year; for financing of electronic vouchers of accounts receivable, the parties shall register through unified registration and publicity system.
The fund clearing and settlement of electronic vouchers of accounts receivable should be carried out through commercial banks and other qualified institutions.
Effectiveness
The published notice shall be implemented from Jun. 15, 2025.
