China's central bank emphasizes supply chain finance development

XI'AN, June 1 (Xinhua) -- China will promote the standardized development of supply chain finance, effectively broaden the financing channels for micro, small and medium-sized enterprises and ensure more funds flow to the real economy, according to the central bank.

A woman works at a factory of the Harbin Dongan Automotive Engine Manufacturing Co., Ltd in Harbin, capital of northeast China's Heilongjiang Province, March 10, 2020. (Xinhua/Wang Song)

Wang Xin, head of the research bureau at the People's Bank of China, said the country still faces some difficulties in developing supply chain finance.

Information sharing is yet to be realized among financial institutions, major enterprises, government departments and third-party institutions, the standardization and transparency of accounts receivable financing need to be further improved and risks of fraudulent transactions still exist, Wang said at the just-concluded China Finance 40 Qujiang Forum.

In the next step, efforts should be made to improve the supply chain billing platform, establish a credit mechanism and prevent risks of supply chain finance, he said.

Chinese authorities issued a guideline in September last year, putting forward a slew of policy requirements and measures to regulate the development and innovation of supply chain finance, construct the supporting infrastructure, improve the policy supporting system, and prevent risks.