Shanghai builds better service by improving business infrastructures
Shanghai is making great efforts to create more quality and efficient services for enterprises by facilitating the business environment and improving relevant infrastructures.
The Shanghai Commercial Paper Exchange Corporation, which opened on December 8, 2016, aims to improve the security, transparency and transaction efficiency of the country’s commercial paper market and help financial institutions and companies better guard against business risks.
Approved by the central bank, it is the official national bill trading platform and functions as an important infrastructure of China’s financial market.
The exchange offers services including quotation and trading of commercial papers, clearing and settlement.
Song Hanguang, president of the Shanghai-based bill trading platform, said that they will also play an important role in serving the real economy. They will help the funding needs of small and medium enterprises that are comparably in an unfavorable position for seeking bank loans, and will turn to commercial paper trading as an alternative means for financing.
Song added that as many as two-thirds of the financing needs on their platform come from those companies.
In the future, Shanghai Commercial Paper Exchange said they will be dedicated to innovating more diversified commercial paper products and transaction modes and aims to further facilitate Shanghai’s drive to build an international financial center.
As of the end of this October, a total of 2,578 legal entities have been connected to the exchange’s bill transition system, with the bill acceptance amount hitting 14.43 trillion yuan (US$ 2.07 trillion), data from the organization showed.