The trillion-dollar supply chain financial market is unsatisfied and blockchain technology may be the answer | pinjaman danamon, win88 chat, totogaul sydney togelers 2023

In the past few years, supply chain finance has been at the forefront.

According to statistics from the consulting firm McKinsey, there are currently US$2 trillion in idle funds in credit accounts worldwide. If this bankable, relatively safe receivable is effectively utilized through supply chain finance, the world can gain an additional US$20 billion in potential revenue.

According to statistics from Tokeninsight, in 2016, the global supply chain finance market reached US$135 billion in Europe, US$235 billion in the Americas, and only US$70.8 billion in Asia.

Data from the National Bureau of Statistics show that as of July 2018, the accounts receivable of Chinese companies were 13.93 trillion yuan, and it is expected that the size of my country’s supply chain finance market will reach 27 trillion yuan by 2020.

Based on the three data, it can be seen that a large number of domestic supply chain needs have not been met, and the industry has huge room for development.

In terms of policy, national deleveraging and regulatory policies have become stricter since 2017. Under the circumstances of de-channeling and deleveraging, market liquidity has tightened, bank lending has slowed down and income has decreased, private financing costs have risen rapidly, and the problem of difficult and expensive financing for small and medium-sized enterprises has become increasingly serious.

In addition, once the capital flow of small and medium-sized enterprises is interrupted, it will have a greater impact on the supply chain of core enterprises.

Supply chain finance refers to the introduction of financial institutions such as banks and factoring companies into the supply chain to revitalize assets such as accounts receivable, prepayments, warehousing and logistics, which can solve the problems of difficult and expensive financing for small and medium-sized enterprises.

The demand for supply chain finance from various institutions such as small and medium-sized enterprises, banks, factors, and core manufacturers has long been evident.

The long-standing pain points of supply chain finance lie in the difficulty in verifying transaction authenticity, high operating costs, insufficient market coverage, and difficulty in risk control. The blockchain's multi-point consensus, distributed ledger, and non-tampering characteristics can exactly solve these pain points.

The trend of supply chain finance has caught up with the trend of blockchain development. The combination of the two will become the focus of most attention in the application scenarios of blockchain technology.

Blockchain technology realizes supply chain finance improvement

In this blue ocean market, large e-commerce platforms, central enterprises, Internet giants, and banks each dominate with their own resources. Some of them have already been involved in the field of supply chain finance, have mature management and operation systems, and are self-contained systems. The application of blockchain technology has become an improved tool for them to manage supply chain finance.

E-commerce giants such as Alibaba, JD.com, and Suning rely on the big data advantages of their own platforms to conduct credit risk ratings for small, medium and micro enterprises and have good risk control systems.

For large core enterprises, such as TCL, Skyworth, Midea, Foxconn and other manufacturing giants, their suppliers have formed a multi-level chain, and they often need to provide credit support on behalf of the core enterprise through a large service platform based on the "core enterprise multi-level supplier" model. This platform uses blockchain and other technologies to make information flow, logistics, and capital flow flow better on the chain.

The "Micro Enterprise Chain" jointly created by Tencent and its investment company Lianyirong, the China Enterprise Cloud Chain established with the background of central enterprises such as CRRC and China Railway Construction, and the "One Enterprise Chain" released by OneConnect, a subsidiary of Ping An Group, are all self-contained supply chain finance based on blockchain technology.Service platform.

In order to explore how "core enterprise multi-level suppliers" can use blockchain technology to achieve a new supply chain financial model with multi-level credit penetration, the reporter contacted Li Kangning, general manager of Tengan Fund Sales Company and chief financial expert of Tencent Financial Technology Think Tank, and Ji Kun, co-founder and president of Lianyirong.

Lianyirong was established in Qianhai, Shenzhen in February 2016. It is invested by Tencent, CITIC Capital and other companies or funds. It is a supply chain financial service platform company. According to Ji Kun, the trademarks and intellectual property rights of Micro Enterprise Chain are shared by Lianyirong and Tencent. The underlying blockchain technology is provided by Tencent Blockchain, and the operation of the entire platform is handled by Lianyirong.

One of the pain points of traditional supply chain finance lies in the verification of true trade background. For banks, when lending to small and medium-sized enterprises, they need to understand the true operation of the supply chain and ensure that the participants, transaction results, documents, etc. are based on real asset transactions. These verifications require a large amount of manpower and material resources.

Li Kangning believes that the micro-enterprise chain based on the underlying technology of blockchain can exactly solve this problem. Traditional supply chain finance requires checking various information such as invoices and contracts, and faces many fraud and operational risks. The micro-enterprise chain is based on Tencent's "image recognition technology, industrial and commercial taxation and other related authentication technologies", making the true trade background verification on the supply chain relatively accurate.

The characteristics of the blockchain, such as multi-point consensus and non-tampering, enable first-tier suppliers to transfer their claims on the core enterprise's accounts receivable according to the supplier's needs and in compliance with regulations, thus enabling the "core enterprise-first-tier supplier reverse factoring model" of splitting, transferring, and realizing multi-level accounts receivable.

As for how to realize the splitting, circulation and realization of accounts receivable, Li Kangning explained, "From a results-oriented perspective, splitting refers to splitting accounts receivable into several parts, turning the accounts receivable into a voucher of accounts receivable for digital claims, then the supplier can take out part of it and transfer it to its upstream."

Ji Kun pointed out that if accounts receivable want to achieve multi-level circulation, the longer the circulation level, the higher the requirements for the authenticity and risk control of transactions in the entire supply chain process. Blockchain technology can greatly improve the transaction efficiency of the entire supply chain finance.

Therefore, the micro-enterprise chain supply chain service platform can access lawyers, accountants, factoring companies, securities firms and other institutions to issue ABS products through supply chain finance. "It is equivalent to small and micro enterprises paying the core enterprise's accounts receivable to a factoring company, which then transfers the accounts receivable to an asset management plan, which is listed and issued on the exchange through the asset management plan, and financial institutions purchase the asset management plan."

Currently, the customers served by the micro-enterprise chain cover manufacturing, automobile, consumer and other industries. Among them, industries with strong financial attributes such as the real estate industry will have stronger demand for supply chain finance and ABS.

Major banks and core manufacturers are rushing into the blockchain and supply chain finance market. More than ten banks, including Ping An Bank, China Zheshang Bank, China Merchants Bank, China Everbright Bank, and Minsheng Bank, have begun to make efforts. Enterprises such as Haier, TCL, Skyworth, Midea, Lenovo, and Foxconn are also building their own supply chain financial systems.

Providing technical solutions for supply chain finance

In addition to Tencent, Lianyirong’s micro enterprise chain and China enterprise cloud chain, etc.Large-scale supplier financial service platforms and emerging blockchain startups such as ComplexMei and Qulian also regard "blockchain supply chain finance" as one of their main businesses.

Wu Sijin, founder and CEO of Complex Beauty, told reporters that the underlying system of Complex Beauty’s Chain33 blockchain adopts a parachain architecture. The parallel chain and the main chain share the consensus network, but can develop an independent ecosystem. It can deploy its own super nodes and write different smart contracts. In terms of supply chain finance, an industry parallel chain is built. Borrowing, financing, and acceptance between enterprises can all be realized through smart contracts, and the credit data of enterprises can be accumulated on the blockchain.

Complex Midea’s supply chain finance solution is based on the Baitiao system. It first provided a billing system for HNA, and later began to develop a blockchain Baitiao system for leading home appliance companies such as Midea. It has also cooperated with nearly ten large companies such as JD.com, Xiaomi, and Shanghai Automobile.

Wu Sijin explained that when a supplier sells goods to a core enterprise, the core enterprise will issue a voucher for the payable, which is called a "white slip". This IOU is written on the blockchain and can be traced or split. The user who gets the IOU can know how long the IOU can be accepted.

“Assuming that in a supply chain with Midea as the core enterprise, upstream suppliers can use IOUs to pay to second-tier suppliers, and the circulation of IOUs can penetrate multi-level suppliers in the supply chain, the financing costs of these enterprises will be greatly reduced, and the last supplier can wait until maturity to apply for acceptance from the core enterprise, or transfer the IOUs to dealers downstream in the supply chain, who can use them to purchase goods from the core enterprise, thus forming a good closed-loop system.”

According to Wu Sijin, IOUs are similar to traditional commercial acceptance bills, but commercial acceptance bills are more legal and cannot be split and transferred, while IOUs are more flexible and can effectively solve the short-term financing difficulties of small and medium-sized enterprises. On the other hand, the IOUs of core enterprises can only be used within the supply chain, assuming the function of internal currency, and cannot be used externally, thus avoiding the risk of fund misappropriation.

“Compared with the high interest rates and centralized JD Baitiao and Ant Financial’s Huabei, the complex Midea Baitiao system circulates on the blockchain, which is more decentralized, highly efficient and has low interest rates.” Wu Sijin said.

QuLian Technology’s accounts receivable financing is conducted through the “Golden Ticket” system. Whether it is the complex and beautiful "White Tiao" or the "Golden Ticket" of Qulian, they are actually innovations in traditional commercial acceptance bills. Their functions are similar, except that "White Tiao" and "Golden Ticket" can realize the splitting and circulation of bills through blockchain technology.

However, unlike ComplexMei’s business of serving large core enterprises, Qulian Technology’s core customers mainly come from financial institutions. For example, Qulian’s cooperation with Ximei Factoring Company and Zheshang Bank is carried out through its Feiluo supply chain financial platform and based on the “golden ticket system” of accounts receivable financing.

Liu Yaozhen, technical director of Qulian, told reporters that banks or factoring companies also have a need to become the dominant party in the supply chain financial system. “They become key nodes in the blockchain and have their own data and control rights. Supply chain financial chains led by banks or factoring companies, usually because some core enterprises do not have too much resource investment, the original customers of banks or factoring companies can directly use their accounts receivable chain platform, and these enterprises do not necessarily need to deploy nodes. ”

Whether it is Micro Enterprise Chain, Complex Beauty's "Baidiao" or Qulian's "Golden Ticket" system services, financing is based on bill circulation and accounts receivable, narrowing the financing gap between small and medium-sized enterprises and large enterprises.

Complex Meihe Qulian positions itself more as an innovative blockchain technology company, providing blockchain technology solutions for supply chain finance to large core enterprises and banks. From this perspective, these companies make the supply chain financial chain more distributed and more in line with the characteristics of blockchain.

Blockchain technology spurs new supply chain financial model

In fact, traditional supply chain finance, in addition to domestic mainstream accounts receivable financing, also includes credit insurance, logistics waybill pledge, inventory pledge, standard warehouse receipt pledge, etc.

In this regard, Qulian uses blockchain technology to design many customized solutions, making it possible to promote credit insurance, warehouse receipt pledge, waybill pledge, and green energy ABS financing.

According to Liu Yaozhen, credit insurance is a new business promoted by Qulian, Ainxin Life Insurance and its subsidiary Ainxin Brokerage Company. At present, the market share of credit insurance as a whole in domestic supply chain finance is very low. But from a global perspective, when it comes to trade and supply chain finance, almost one-third of the business is carried out through credit insurance.

This means that "credit insurance still has a lot of room for development in the domestic market, and it also depends on the construction and improvement of the domestic credit system."

This is mainly because there are still a large number of core enterprises in China. Although they are large, their ratings in the capital market are relatively low. Even on the blockchain, factors such as system recognition and poor liquidity will affect the liquidity of golden tickets on the blockchain platform.

When the credit of core enterprises is limited, the role of credit insurance becomes prominent. Through the credit support of insurance companies, the probability of banks providing financing will be much greater.

In addition, there are some industrial parks. The entire industrial chain consists of small workshops or small factories, and there is no core corporate credit guarantee. These companies can reduce risks through insurance companies by purchasing insurance policies.

Blockchain technology can also empower supply chain finance-related businesses such as asset securitization, digital warehouse receipts, logistics supply chain, and green energy.

Among them, asset securitization is through the multi-center ABS issuance and management platform of blockchain joint exchanges, foundations, rating agencies, law firms, regulatory agencies, investors, etc. All relevant data and asset package information are all uploaded to the chain, which can improve liquidation efficiency, verify the authenticity of information in real time online, improve product liquidity, and achieve full management of the asset life cycle.

During the application process, once a risk to corporate capital liquidity is discovered, the entire ABS issuance system can respond promptly to avoid chain breaks similar to the "subprime mortgage crisis".

Liu Yaojing gave an example from the photovoltaic industry. The early stage of photovoltaic is a very heavy asset investment industry. Purchasing photovoltaic panels and laying photovoltaic panels require rooftops of some large sites. It is actually a very long process until the power grid finally generates electricity to obtain benefits. In this process, future income from photovoltaics will be packaged into ABS products based on the blockchain.Recording and issuing on the blockchain can make the originally asset-heavy industry lighter.

"It's like a ticket to an amusement park. You have to spend a lot of money to build an amusement park in the early stage. It may take decades to recover the cost through the tickets, which makes the entire threshold very high. You have to sell the tickets in advance." Liu Yaozhen explained.

To sum up, whether it is accounts receivable, logistics waybills, warehouse receipts, or photovoltaic energy, they can essentially be regarded as real assets on the blockchain network. The essence of supply chain finance is to finance through the mortgage of assets, allowing small, medium and micro enterprises to achieve easy financing convenience and an interest rate close to the financing of large institutions.

Multi-point trusted collaboration, tracing back to the source, the supply chain financial service platform with blockchain as the underlying technology plays such a media role, realizing the matching of small and medium-sized enterprise assets and financial institution funds, and performing multi-level transfers, which is simple and efficient.

"Supply chain finance is not only being done by Tencent, but also many banking institutions and financial technology companies are involved in related businesses. This can actually prove the usefulness of such a platform in the overall context. On the other hand, if it were not a direction recognized by society or the market, so many people would not join this field in 2017 and 2018," Li Kangning said.

Wu Sijin believes that in the future, it will become a trend for individuals or companies to issue IOUs.

At the 2019 Two Sessions, Zhang Jin, Chairman of Cedar Holdings Dong Data, proposed the need to establish a supply chain financial platform and use blockchain and other technologies to link financial institutions, core enterprises, third-party logistics companies and other entities to form online links.

Blockchain technology records real assets in the virtual world for the first time and makes them non-tamperable. It is a major driving force for the development of supply chain finance. Multi-point consensus and trusted collaboration reduce the importance of third-party credit intermediaries and eliminate various inherent diseases caused by credit in social and economic operations.

I believe that in the near future, in addition to supply chain financial financing such as accounts receivable, ABS, logistics waybills, warehouse receipts, and energy, driven by blockchain technology, more equal and collaborative new business models will surely emerge.

(Source: Zinc Link)