Last week China’s Zheshang Bank issued asset backed commercial paper (ABCP) where the assets were made up of receivables on its supply chain finance blockchain. ABCP is a new product approved by the China Interbank Market Dealers Association. It merges traditional commercial paper concepts with asset backed securities (ABS) and is particularly well suited to trade finance because of its short-term nature. The first ABCP issued by Zheshang Bank is for six months and 120 million Yuan ($17 million).
Almost two years ago, the bank issued a $68 million loan note, backed by blockchain trade finance assets.
“ABCP product characteristics and the concept of serving the real economy and SMEs are very consistent with the long-explored supply chain finance innovation of Zheshang Bank and the practice of supporting the industrial chain to coordinate the resumption of production,” said Shen Bin, of Zheshang Bank, speaking to China Banking and Insurance News.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
