2019 International Factoring and Supply Chain Finance Conference Successfully Held

China Commercial Factoring Financing Cooperation 4th Conference & 2019 International Factoring and Supply Chain Finance Conference Successfully Held: Industry Experts Co-Talked about Global Supply Chain Financial Cooperation and Development

During November 5 to 6, 2019,China Commercial Factoring Financing Cooperation 4th Conference(CFFC) & 2019 International Factoring and Supply Chain Finance Conference(IFSCF) were successfully held in Shenzhen.

As a special activity of 2019 The 13th Shenzhen International Finance Expo, the conference, under the guidance of Shenzhen Municipal Financial Regulatory Bureau, and Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, was jointly hosted by Guangdong Factors Association and Shenzhen Factors Association, and co-hosted by FCI, Commercial Factoring Expertise Committee of CATIS, BCR, Beijing Commercial Factoring Association, Tianjin Commercial Factoring Association, Shanghai Commercial Factoring Association, Chongqing Commercial Factoring Industry Association, Shanghai Pudong Commercial Factoring Industry Association, Suzhou Commercial Factoring Association, Shenzhen International Chamber of Commerce, etc., and organized by Shenzhen Factors Association.

The conference invited leaders of relevant government departments such as China Banking and Insurance Regulatory Commission, local financial supervision bureaus, leaders of industry association, well-known experts and scholars in the field of domestic and international supply chain finance and commercial factoring, experts and professors in higher education institutions and business participants in commercial factoring, to jointly explore the opportunities and challenges of development of supply chain finance and commercial factoring in the new situation, and work together to promote healthy and stable development of supply chain finance and commercial factoring, serve the real economy, and make new contributions to helping private and micro and small enterprises financing.

In order to demonstrate the development achievement of China’s commercial factoring industry, there was the “Commercial Factoring and Supply Chain Finance Technology Innovation and Development” exhibition area at 2019 The 13th Shenzhen International Finance Expo, systematically demonstrating the development status of global factoring and China’s commercial factoring and the innovations of several commercial factoring enterprises.

A number of industry experts were invited to deliver keynote speeches at the conference and a number of special forums, cooperative partnering forums and industry seminars were organized, providing an important platform to strengthen the exchange of theory, ideas and experience, promote industry exchanges and cooperation worldwide, and facilitate the integration and partnering of industry resources.

Pingsheng Liu, Secretary of the Party Committee, Shenzhen Municipal Financial Regulatory Bureau, Josep Sellés, Executive Committee Member and Chairman of Supply Chain Finance Committee of FCI, Jiangshan Yin, President of Shenzhen Factors Association, President of Innovation Institution of Factoring and Supply Chain Finance in Qianhai, and Michael Bickers, President of BCR, gave a speech at the opening ceremony.

Pingsheng Liu said that the commercial factoring industry has fully utilized its own advantages, promoted the development of supply chain finance, and strived to build a good ecosystem of supply chain finance. It has become one of the fastest growing industries in supply chain finance, playing an important role in alleviating the difficult and expensive financing for small and medium-sized enterprises, reducing the leverage ratio of enterprises and improving the commercial credit environment.

Josep Sellés said that the FCI has more than 400 members worldwide in more than 90 countries. The global factoring industry continues to grow. According to the statistics of the FCI, the global factoring business in 2018 totaled EUR 2767.1 billion, accounting for 3.7% of the global GDP.

Jiangshan Yin said that China’s commercial factoring has played an important role in revitalizing corporate stock assets and solving the financing difficulties of SMEs, and has effectively served the real economy and effectively helped micro and small enterprises solving the problems of difficult, expensive, urgent and frequent financing. According to the statistics of the Commercial Factoring Expertise Committee of CATIS, since 2012, China’s commercial factoring companies have provided a total of RMB 4 trillion receivable financing, serving more than 3 million SMEs.

Michael Bickers said that China’s supply chain finance and commercial factoring have achieved rapid growth in recent years, and the application of financial technology will play an important role in promoting the development of the industry. The convening of the International Factoring and Supply Chain Finance Conference is conducive to strengthening international exchanges and cooperation. Economic experts from all over the world have thoroughly explored hot topics in supply chain finance in a multi-dimensional and multi-dimensional way, providing intellectual support for the globalization of supply chain finance. The government, industry organizations, institutions, and enterprises is expected to work together to support international factoring and supply chain finance conferences.

Wei Li, Secretary General of the Commercial Factoring Expertise Committee of CATIS, presided over the opening ceremony.

    Zhongmin Wang, President of Shenzhen Financial Stabilitiy and Development institute and former Vice President of National Council for Social Security Fund; Zhengli Fu, Director of Division II of Local Institution Regulation of Inclusive Finance Department of China Banking and Insurance Regulatory Commission; Chenghui Zhang, Researcher of State Council Development Research Center and former Director of Financial Research Institute; Haowei Tian, Consultant of Guangdong Factors Association and Full-time Member of the former Judicial Committee of Tianjin Higher People’s Court; Guixuan Liang, Consultant of Guangdong Factors Association and former Inspector of Guangdong Provincial Foreign Trade and Economic Cooperation Department; Aiqun Wang, Consultant of Guangdong Factors Association, former Deputy Secretary of the CPC Guangdong Provincial Direct Working Committee, and former Director of the Guangdong Provincial Evaluation Office; Chris Southworth, Secretary General of ICC UK; Jinchang Lai, Lead Financial Sector Specialist and Lead for Financial Infrastructure of East Asia Pacific Region in World Bank Group International Finance Corporation; Min Zhang, Chairman of Guangdong Factors Association; Hui Lin, North East Asia Region Director of FCI; Guogang Chen, Chief Executive Officer of Shenzhen Qianhai Financial Assets Exchange; Qun Song, Chairman and CEO of Linklogis Digital Technology Group Co., Ltd.; Tianwei Zhu, Moody’s Analysis North Asia and Japan Managing Director; Jinsong Ba, Deputy General Manager of the Supply Chain Finance Division of China Minsheng Banking Corporation; Wenjun Shen, Director of the Supervision Division II of Hubei Local Finance Supervision Bureau; Jun Li, Deputy Director of the Supervision Division II of Guangdong Provincial Local Financial Supervision Bureau; Zhengyang Zhao, Director of the Supervision Division II of Shenzhen Municipal Financial Regulation Bureau; Quanmin Zeng, Deputy Researcher of Sichuan Provincial Financial Regulation Bureau; and other honorable guests, attended the conference.

Zhengli Fu made an on-the-spot interpretation of the Notice on Strengthening the Supervision and Administration of Commercial Factoring Enterprises issued by China Banking and Insurance Regulatory Commission recently (Yin Bao Jian Ban Fa [2019] No. 205). She said that the purpose of the notice was to regulate business operations of commercial factoring enterprises, strengthen supervision and administration, ascertain regulatory responsibilities, prevent and resolve risks, and promote the healthy development of commercial factoring industry. In the next step, China Banking and Insurance Regulatory Commission will promptly formulate the Measures for the Supervision and Administration of Commercial Factoring Enterprises to further improve the market access, exit, business operations and supervision and administration rules of commercial factoring enterprises.

Zhongmin Wang said that supply chain finance and commercial factoring has ushered in the spring of development along with the advancement of Shenzhen’s pioneering demonstration zone for building socialism with Chinese characteristics. Digitization is the driving factor of the current social economy and urban economic development. The development of supply chain finance in the digital age faces many opportunities and challenges. In this era, how supply chain finance can realize its digital development while providing financial services is also of essence. He also pointed out that light asset is the theme of the industrial era. Supply chain financial asset securitization can reduce the comprehensive financing costs at both ends of the supply chain, optimize corporate statements, balance the interests between upstream and downstream enterprises in the supply chain, and promote the sound development of the closed-loop industry chain.

Chris Southworth introduced that supply chain finance and factoring, as a complement to traditional finance, has made important contributions to the advancement of global trade. The digitization of trade requires the joint efforts of the government and enterprises. Internationally, uniform rules should be established, and corresponding laws should be enacted, for digital trade and digital transactions.

Chenghui Zhang believed that the four major trends in the future development of supply chain finance are: development from single type to multiple types of parallel development, from single chain to platform development, from digital technology to the coexistence of multiple financial instruments, financing services from a certain node to cover the financing services of the product full cycle. The development speed of China’s financial technology is leading in the world. Financial technology has played an active role in boosting the development of inclusive finance, improving the efficiency of financial operations, improving risk prevention and control capabilities, and enhancing the efficiency of financial supervision.

Jinchang Lai pointed out that China’s supply chain finance and factoring market is huge, and there are a large number of market participants, mainly in the Greater Bay Area. In the future, China’s supply chain finance and factoring should move toward normalization. We should make great efforts in the reform of the substantive security property system, and we must go global and actively benchmark international standards to form a set of advanced practices in line with international standards.

Yanling Zhang, Chairman of China Supply Chain Finance (Commercial Factoring) 50 Forum and former Vice President of Bank of China, pointed out that the “Belt and Road” represents a multilateral cooperation innovation model characterized by co-building and win-win cooperation, sharing risks and sharing interests. The “Belt and Road” Initiative requires financial innovation, and supply chain finance and factoring play an important role in promoting facilities connectivity, unimpeded trade, financial integration of the countries along the “Belt and Road”.

Jiaping Han, Director of CFEC and Director of The Institute of Credit of CAITEC of MOFCOM, pointed out that at present, the commercial factoring industry has entered the growth stage from the initial stage, and in 2018, the growth rate of China’s commercial factoring industry was naturally lower than the initial period, but the industry still maintained a double-digit growth rate as a whole. China Banking and Insurance Regulatory Commission officially issued the “Notice on Strengthening the Supervision and Administration of Commercial Factoring Enterprises” recently. It not only reflects the regulatory ideas, but also conforms to the actual situation of the industry. With the implementation of supervision, the business operations of commercial factoring enterprises will be further regulated, and commercial factoring enterprises will also be guided to conduct more business in the market. Commercial factoring enterprises should adhere to compliance management, make great efforts to consolidate risk management, improve the ability to prevent and resolve various risks, and maintain healthy and sustainable development of the industry.

Guogang Chen pointed out that many factoring organizations generally face two types of pain points in their daily operations. One is the shortage of funds and the difficulty in refinancing; the other is the unpredictable business risk, including fraud risk, credit risk and operational risk. To create a smart, safe, convenient and efficient supply chain financial “core asset” transaction service platform through the application of financial technology can facilitate commercial credit transfer, improve efficiency, reduce costs, and effectively solve the difficulties and pain points of supply chain asset circulation, touch the groups that are difficult to cover in the traditional financial system, truly realize inclusive finance and facilitate the achievement of the supply side reforms in the financial sector.

Qun Song said that the use of big data, cloud computing, blockchain, artificial intelligence, mobile payment and other advanced technology aims to create a supply chain financial technology platform and commit to the development of scene, online, data supply chain financial services, helping solving the problem of financing difficulties of SMEs and creating incremental value for the industry chain.

A number of industry experts were invited to deliver keynote speeches at the conference, two roundtable forums of “International Factoring and Supply Chain Finance Forum of Guangdong-Hong Kong-Macau Greater Bay Area” and “2019 International Factoring CEO Roundtable Dialogue Forum”, six parallel forums of the “Belt and Road” International Factoring and Supply Chain Financial Development Forum, Trends and Prospects of the Global Factoring Industry Forum, National Chairman Dialogue Forum, Factoring Asset Securitization Forum, Fintech for Factoring and Supply Chain Finance, International Factoring and Supply Chain Finance Forum were held, and “Witchain” Supply Chain Asset Rating System of SZFA, QEX and Moody was launched, providing an important platform to strengthen the exchange of theory, ideas and experience, promote industry exchanges and cooperation worldwide, and facilitate the integration and partnering of industry resources.

The participants expressed a lot of insights and valuable opinions on relevant topics. The frontiers and wisdom of the experts expressed the core crux and proposed solutions to provide intellectual support for promoting the development of China’s supply chain finance and commercial factoring.