july 18, reuters noted that chinese authorities recently further standardized the supply chain financial business, requiring the banking and insurance institutions to focus on supporting enterprises in line with the national industrial policy direction, focusing on the real economy, advanced technology, market competitiveness of the industrial chain; adhere to the true background of the transaction, to prevent false transactions, fictitious financing, illegal profit phenomenon.
according to reuters on july 16, china's senior supply chain finance practitioners said, this shows that the regulator is aware of the recent supply chain financial risks in the market, warning financial institutions to take precautions; it also stressed that financial institutions should remain focused on serving the real economy and prevent banks from over-innovating in some businesses.
according to reports, the relevant departments to strengthen risk control aspects mentioned the following requirements: strengthen the overall risk control, banking financial institutions shall establish a sound financial risk control system of the whole chain of supply chain oriented, according to the characteristics of supply chain finance business, increase in advance, matter and afterwards each link of the pertinence and effectiveness of risk management, to ensure that the capital flow to the entity economy. to strengthen risk management and control of core enterprises, banking financial institutions should strengthen the monitoring of the operation status of core enterprises and the transactions between core enterprises and upstream and downstream chain enterprises. strengthen authenticity review. banking financial institutions should conduct due diligence and professional judgment on authenticity and rationality of transactions when carrying out supply chain financing business. to strengthen compliance management, banking and insurance institutions should strengthen the compliance management of supply chain financial business, carry out business innovation in compliance and prudence in accordance with the requirements of returning to the source and focusing on the main business, and prohibit illegal business exhibition or disguised business without permission in the name of financial innovation. we will strengthen the development of information technology systems.
source: reference message