On October 11, 2018, the Supply Chain Finance and SME Financing Forum during the 15th China International Small and Medium Enterprises Fair (hereinafter referred to as "CISMEF") was held in Guangzhou. Ye Dingda, deputy director general of the SME Bureau of the Ministry of Industry and Information Technology (MIIT), attended and delivered a speech.
In his speech, Ye pointed out that supply chain finance is the best practice of combining industry and finance, solving the problem of information asymmetry in finance and industrial development, realizing the synergy between asset and capital in the supply chain, which is of great significance to improve the competitiveness of industrial chain, and ease financing difficulties and high costs. First, the development of supply chain finance will help promote the development and integration of large and medium-sized enterprises. Supply chain finance can achieve efficient coordination of logistics information flow and capital flow by opening up the industrial chain and financial chain, which will significantly improve the stickiness and competitiveness of the industrial chain and promote the development and integration of large, medium and small enterprises.
Second, the development of supply chain finance has opened up a new path for financial support for the real economy and for alleviating the financing difficulties of small and micro enterprises. The distinctive feature of supply chain finance is to rely on the core enterprise credit of the industry chain, thus helping small and micro enterprises around the upstream and downstream of the industry chain to lower the loan threshold, reduce dependence on land mortgages, revitalize current assets, and improve loan availability. Third, the development of supply chain finance can promote the development and utilization of information and promote the improvement of the credit system. With the application of information technology such as big data, Internet of Things, and blockchain, the information on production, supply, sales, and deposits that were originally deposited in the industrial chain will be renewed, and resources and technologies such as information, technology, capital, and commodities will be realized the integration, which helps financial institutions better identify high-quality companies and provide better financial services for companies with orders, markets and credit.
Ye emphasized that the standardized development of supply chain finance is conducive to broadening the financing channels of small and micro enterprises and ensuring the flow of funds to the real economy. This is both an urgent need for small and micro enterprises and an inevitable requirement for financial service innovation. It is hoped that all parties will work together to promote innovative financing models suitable for small and micro enterprises, such as supply chain finance, continuously optimize the financing environment of small and micro enterprises, promote the healthy development of small and micro enterprises, and make more contributions to the high-quality development of China's economy and society.
The forum was hosted by the Organizing Committee of the 15th CISMEF and organized by the Guangdong Association for the Development Promotion of Small and Medium Enterprises. More than 500 people from financial institutions, industry associations, and SMEs attended the forum.