China's Zheshang Bank issues the first Asset-backed Chinese Commercial Paper and uses Blockchain

China's Zheshang Bank issues the first Asset-backed Chinese Commercial Paper and uses Blockchain

Five hours ago was published report from “chinabankingnews” on how China’s Zheshang Bank (浙商 银行) delivers China’s first asset-backed commercial paper based on blockchain technology.

On June 5, CZB issued an official commercial document entitled “Lianxin 2020 Lian­jie First Phase As­set-backed Com­mer­cial Pa­per” (鑫 鑫 2020 年度 捷 捷 第一 资产 资产 支持 商业 票据).

This product is officially the first Chinese ABCP to be launched by the Na­tional As­so­ci­a­tion of Fi­nan­cial Mar­ket In­sti­tu­tional In­vestors (NAFMII), and the issue was worth 120 billion yuan ($ 16.93 billion).

  • ABCP are as­set-se­cu­ri­ti­sa­tion prod­ucts com­prised of the ac­counts re­ceiv­able and bills of one or mul­ti­ple en­ter­prises, that are used by com­pa­nies for their short-term fi­nanc­ing needs, and typ­i­cally have ma­tu­ri­ties of be­tween 90 and 270 days. 

A NAFMII spokesperson said that the launch of ABCP in China meant “or­ganic in­te­gra­tion of sup­ply chain fi­nance and SME fi­nanc­ing, that in­creases the ac­ces­si­bil­ity of fi­nanc­ing for small and medium-sized en­ter­prises that have dif­fi­culty with fi­nanc­ing via di­rect debt is­suance.

China’s Zheshang Bank said ABCP uses an innovative design that “com­bines the use of blockchain tech­nol­ogy with as­set se­cu­ri­ti­sa­tion, in or­der to pro­vide a greater num­ber of up­stream and down­stream small and medium-sized en­ter­prises with a di­rect chan­nel to mar­kets, help­ing to greatly in­crease the ac­ces­si­bil­ity of busi­ness fi­nanc­ing.

CZB is already building almost its entire platform on blockchain technology, and until today issued more than 100,000 “blockchain receivables” for almost 4,000 enterprise clients.

About China Zheshang Bank
China Zheshang Bank, abbreviated as CZB, is a national joint-stock commercial bank based in the People’s Republic of China and regulated by the People’s Bank of China./wiki

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