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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