Recently, eight departments including the People's Bank of China ("PBC") have issued the Opinions on Regulating the Development of Supply Chain Finance and Supporting the Steady Circulation and Optimization and Upgrade of Supply Chain and Industry Chain (the "Opinions").
The Opinions put forward 23 policy measures in six aspects such as accurately grasping the connotations and development direction of supply chain finance and steadily pushing forward the standard development and innovation of supply chain finance. The Opinions point out that financial institutions and brick-and-mortar enterprises shall intensify information sharing and collaboration, enhance the overall financial services of industry chain, and improve the online and digital level of supply chain financing settlement. Efforts shall be made to improve the standardization and transparency of accounts receivable, enhance the financing efficiency of accounts receivable of micro, small and medium-sized enterprises, support the unclogging and restoration of global industry chain, regulate the development of supply chain inventory, warehouse receipt and order financing, and strengthen risk guarantee support for supply chain finance. The Opinions also require efforts in improving the functions of supply chain note platform, promoting the uniform registration and publicity of movable property and right guarantee, optimizing the regulation and examination rules for supply chain financing, establishing a credit constraint mechanism, and reinforcing the prevention and control for credit risks of core enterprises, financial business operation risks of supply chain, false transaction and repeated financing risks, application risks of financial technologies, among others.