The Deppon Ant Supply Chain Finance Receivables Asset-backed Securities Product of RMB2 billion received a no-objection letter from the Shanghai Stock Exchange (SSE) on March 16, making it the 1st internet e-commerce supply chain asset-backed securities product in China. Issued by Shangrong (Shanghai) Commercial Factoring Co., Ltd. ("Shangrong" for short), a wholly-owned subsidiary of Ant Financial Services, the product represents an effective combination of internet technology, supply chain and asset securitization, and it is a helpful attempt of serving small and medium-sized enterprises (SMEs).
In recent years, the Party Central Committee and the State Council have paid great attention to the innovation and development in supply chain. In the "Guidelines on Actively Promoting Innovation and Application of Supply Chain" released by the General Office of the States Council in October 2017, the major task of actively and steadily developing supply chain finance was clearly put forward, and it aimed to enhance the circulation efficiency of various resources and factors in the real economy and promote the sound development of the supply chain ecology.
This project is to carry out screening and credit extension on merchants settling in Tmall.com and Ali ecology by Shangrong through financial technology and the big data risk control system and to engage in asset securitization through receiving the receivables of upstream suppliers to qualified merchants, thus offering financing for merchants and upstream suppliers. The in-depth integration of supply chain with internet and internet of things has effectively solved the financing issue of upstream and downstream SMEs at lower risks. Besides, as there is a large number of merchants settled in this ecology, the debtors are dispersed, thus avoiding the depending on the credits of one core enterprise and better manifesting asset securitization's feature of "assets in advance, risks dispersed". It is learnt that, by the end of February 2018, there are over 250 merchants of Tmall.com and Ali ecology and nearly 1,500 upstream SME suppliers engaging in factoring business, and the amount of a single business is mostly between RMB0-500,000 and RMB5 million at most. After the issuing, this project will provide SMEs with more efficient and convenient financing channels, which will effectively solve their financing difficulty, further promoting the positive coordination in the supply chain ecology.
The successful launch of this project is an important measure of the SSE to cultivate and develop new driving force and promote the internet supply chain finance to serve the SMEs under the leadership of the China Securities Regulatory Commission (CSRC) and marks a great leap forward towards serving the real economy and solving the SMEs' financing difficulty. Next, the SSE will continue to implement the guidelines of the Party Central Committee and the State Council and promote the supply chain finance in accordance with the arrangement of the CSRC, thus facilitating the development of new technologies, new industries, new business types and new patterns and serving the real economy development from multiple perspectives, in different fields and by diversified methods.