News

Fintech can ease financing needs of private companies

Date Nov 19 2018 14:14:16 Source:China Daily

Fintech can play a great role in helping close the gap between the financing needs of private enterprises and banking products at the time when banks might become more reluctant to address this issue amid downward pressure, according to experts and officials.

"High cost, low efficiency and unsustainable business pattern are common problems faced by inclusive finance in all over the world. Traditional financial service models and technical conditions are difficult to tackle these challenges," Li Dongrong, executive director of China Finance 40 Forum, a non-government think tank, and president of China Internet Finance Association, said during the Global Fintech Summit held on Saturday.

Although concept of inclusive finance has been in existence for nearly 14 years since its inception in 2005, recent research shows mismatch between demand and supply in financial services was quite common.

There are more than 65 million small and medium-sized enterprises facing credit constraints, accounting for 40 percent of the total number of small and medium-sized enterprises. The total financing gap is more than $5 trillion, according to a report by the World Bank Group in April.

Huang Yiping, director of the Digital Finance Research Center of Peking University, said efficient, low-cost fintech sector can play an important role to help ease financing woes of private enterprises.

Financial regulatory authorities should support market-oriented, risk-controlled financial innovations that serve private enterprises. Specifically, support can be provided in three aspects in the short term, namely, issuing licenses, developing credit assessment system, and developing support for remote account opening, according to Huang.

Lowered threshold spurs free trade zone

Date Nov 19 2018 14:07:34 Source:China Daily

The China (Shanghai) Pilot Free Trade Zone, the first of its kind in the country, is turning into a true test case for China's further opening-up, and is attracting thousands of companies from both home and abroad.

The negative list system, which was introduced when the Shanghai FTZ was unveiled five years ago, has been a major breakthrough for the management of foreign investment.

While there were 190 measures restricting or prohibiting foreign investment in the initial version, the number has been downsized to 45 in the latest version jointly released by the National Development and Reform Commission and the Ministry of Commerce in July.

"The negative list is an important fundamental policy innovation," said Zhu Min, deputy director of the Shanghai Development and Reform Commission.

"Shanghai has a longer history in terms of the development of a more open economy. The demand seen in this city is sometimes ahead of other parts of China. Therefore, the policies implemented in the Shanghai FTZ should be replicated and promoted in other cities in the country," he said.

Regarding the achievements that the zone has made over the past few years, President Xi Jinping said during his keynote speech at the opening ceremony of the recent China International Import Expo that the Shanghai FTZ will be further expanded.

Once implemented, it will be the second time for the zone to include a new section, with the first expansion undertaken in late 2014.

Zhao Xiaolei, director of the Collaborative Innovation Center of the China Pilot Free Trade Zone at Shanghai University of Finance and Economics, said the expansion will further promote free trade and indicates a more convenient investment environment in the municipality.

The large number of overseas companies settling down in the Shanghai FTZ demonstrates the allure of the zone. By the end of June, 8,696 foreign-invested companies had been registered in the zone, with total contractual foreign capital topping $110 billion.

ACC Lab, specializing in the testing of foods and dietary supplements, was registered in the Shanghai FTZ in 2015. The company obtained a business license within two weeks, which helped it achieve rapid growth in the domestic market.

"We could hardly imagine how we would be able to make this business happen if not for the negative list," said Si Rong, executive president of ACC.

In line with central government guidelines, Shanghai has focused on opening-up policies in modern services and advanced manufacturing industries. By June, more than 2,600 detailed opening-up policies had been implemented, covering financial leasing, commercial operations and construction design.

Jiang Tai Reinsurance Brokers was founded in the Shanghai FTZ in December 2015.

In addition to being China's first reinsurance company, it was also the first financial institution to obtain a business license thanks to government efforts to cut red tape.

Shen Kaitao, chairman and CEO of Jiang Tai, said that thanks to accelerated policy innovations in the zone, the company can bring international quality reinsurance products and services to the Chinese market.

The free trade account mechanism within the Shanghai FTZ has been an important tool in facilitating the development of the real economy. More than 38,000 Chinese and overseas companies have registered more than 72,000 FTAs in Shanghai. Total cross-border settlements stand at 25.9 trillion yuan ($3.7 trillion), reaching 161 countries and regions.

According to Shi Liya, deputy inspector at the Shanghai head office of the People's Bank of China, one important function of the FTA is to help companies seek cross-border financing so that they can best use the resources both in China and abroad. The total amount of such financing under the FTAs has reached 1.36 trillion yuan.

"The ultimate goal of the innovative financial policies introduced in the Shanghai FTZ is to help companies seek substantial growth and get real benefits," she said.

China tightens ban on solid waste imports

Date Nov 19 2018 11:31:23 Source:Xinhua

The Chinese government has introduced a tightened ban on solid waste imports, according to an official document.

Effective on Dec 31, 2018, 32 types of solid waste will be banned from imports, according to the document released by the Ministry of Ecology and Environment, the Ministry of Commerce, the National Development and Reform Commission, and the General Administration of Customs.

The newly-added products include hardware, ships, auto parts, waste and scrap of stainless steel, titanium and wood.

China's imports of solid waste slumped further in the first 10 months of 2018 as the government stepped up enforcement on a ban on solid waste imports.

The country began importing solid waste as a source of raw materials in the 1980s and for years has been the world's largest importer, despite a weak capacity in garbage disposal. Some companies illegally bring foreign waste into the country for profit, posing a threat to the environment and public health.

Given rising public awareness and China's green development drive, the government last year decided to phase out and halt such imports by the end of 2019, except for those containing resources not substitutable.

Bank of China Manila, Equicom Group explore possible cooperation, collaboration

Date Nov 19 2018 10:15:42 Source:Xinhua

The Bank of China Manila Branch and the Philippines' Equicom Group have signed a memorandum of understanding (MoU) to explore possible cooperation, collaboration or partnerships between the bank and the companies under the Equicom Group in the Philippines.

"Both parties agreed to execute the MoU to explore possible synergies and cooperation between the bank and the conglomerate," the Bank of China said in a statement.

It said the facilitation of collaboration and partnership can include referral of both companies' products and services to help inform, assist and provide solutions to their customers and clients.

The signing ceremony was held on Friday at the office of Bank of China Manila.

"Bank of China, with its on-going efforts to become the bridge between the Philippine and Chinese markets, can share its knowledge in advising Chinese companies who may be in need of information about the local health care system as well as those that are looking to do business in the Philippines with the help of the Equicom Group.," the statement said.

It added that the diverse companies belonging to the Equicom Group can also enhance Bank of China's products and services given its solid foundation and expertise in information technology, healthcare and financial services.

The Equicom Group is a diversified conglomerate engaged in the provision and supply of healthcare, credit information, credit rating services, finance, leasing and information technology services and products.

Bank of China Manila, Equicom Group explore possible cooperation, collaboration

Date Nov 19 2018 10:12:46 Source:Xinhua

The Bank of China Manila Branch and the Philippines' Equicom Group have signed a memorandum of understanding (MoU) to explore possible cooperation, collaboration or partnerships between the bank and the companies under the Equicom Group in the Philippines.

"Both parties agreed to execute the MoU to explore possible synergies and cooperation between the bank and the conglomerate," the Bank of China said in a statement.

It said the facilitation of collaboration and partnership can include referral of both companies' products and services to help inform, assist and provide solutions to their customers and clients.

The signing ceremony was held on Friday at the office of Bank of China Manila.

"Bank of China, with its on-going efforts to become the bridge between the Philippine and Chinese markets, can share its knowledge in advising Chinese companies who may be in need of information about the local health care system as well as those that are looking to do business in the Philippines with the help of the Equicom Group.," the statement said.

It added that the diverse companies belonging to the Equicom Group can also enhance Bank of China's products and services given its solid foundation and expertise in information technology, healthcare and financial services.

The Equicom Group is a diversified conglomerate engaged in the provision and supply of healthcare, credit information, credit rating services, finance, leasing and information technology services and products.

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