"Efforts should be made to improve the resilience and safety level of the supply chain of the industrial chain, and promote the effective improvement of the economy and the reasonable growth of the quantity" is the goal of the future supply chain development.

HSBC China actively promotes the development of smart supply chains to meet the new needs of diversification, complexity, distribution, networking and leanness, and implements digital finance, as small as a voucher that can be split more than 400 times, as far as The spring sowing in the potato growing areas of Inner Mongolia has benefited from the vigorous development of its digital smart supply chain.

  Yuan Jiaqiang, Managing Director of HSBC China's Global Trade and Financing Business Department, said: "HSBC's full-chain, intelligent and sustainable supply chain financing model can not only create a more competitive and resilient supply chain for core enterprises, but also enable flexible financing. Accurately support small and medium-sized enterprises, contribute to efficient inclusive finance, and at the same time control risks through technical means."

A win-win, mutual growth and resilient supply chain ecology

  "A 60 million cloud letter has been transferred 8 levels, split more than 400 times, and touched more than 200 suppliers. Almost all of the subsequent financing are small, medium and micro enterprises," said Liu Yujie, general manager of China Enterprise Cloud Chain East China .

  On November 11, 2022, HSBC and China Enterprise Cloud Chain completed the direct connection of the financial service 3.0-based system, and landed the first blockchain-based Yunxin financing loan, becoming the first to promote inclusive financial services through financial service 3.0 of foreign banks.

  According to reports, the cloud letter of China Enterprise Cloud Chain is a detachable, transferable, financing, non-tamperable and irrevocable electronic confirmation certificate created by technical means. Cloud Chain can turn tedious supply chain financing into today's batch , Fast financial products.

As a central state-owned enterprise with mixed ownership, China Enterprise Cloud Chain has created enterprise title confirmation products, capital market products, financial technology products and enterprise service products relying on advanced technological innovation capabilities and market operation capabilities.

  Helping the development of the real economy is the original intention of China Enterprise Cloud Chain.

Through the scientific management of upstream and downstream SMEs, capital flow, logistics and information flow, China Enterprise Cloud Chain provides supply chain enterprises with faster, more accurate measures and higher quality supply chain financial services.

Liu Yujie (left) and Yuan Jiaqiang at the live broadcast room of HSBC at the 2022 CIIE

  Liu Yujie further stated that using a technology platform for supply chain finance is a win-win result. Taking HSBC as an example, at present, only about ten core enterprises and hundreds of suppliers have been jointly developed in Shanghai alone, and all of them have obtained a good reputation.

Realizing the diversification, decentralization and regionalization of the supply chain will be the main direction of global supply chain adjustment in the future.

Yuan Jiaqiang also said that with the help of the smart supply chain ecosystem, HSBC and China Enterprise Cloud Chain have taken practical actions to help small, medium and micro enterprises and promote inclusive finance, so that suppliers at all levels can obtain financial support in a timely manner.

  HSBC will also continue to join hands with well-known financial technology companies such as China Enterprise Cloud Chain to expand and enrich the industry-finance ecosystem, and use the digital supply chain as a starting point to achieve a win-win and mutual growth of the ecosystem.

Intensive cultivation and warm supply chain finance

  Established in 2008, Inner Mongolia Kunyuan Taihe Agricultural Technology Co., Ltd. (hereinafter referred to as "Kunyuan Taihe") has been committed to the cultivation of high-quality potatoes and the research and development of seed potatoes. It is also a partner with the world-renowned food supplier McCann Foods .

  Agriculture is undoubtedly one of the industries most sensitive to temperature. Potatoes, which seem to be solid, have a supply chain that is extremely vulnerable to the weather due to the particularity of "depending on the weather".

At the same time, before spring plowing every year, a large amount of capital invested in purchasing seeds and fertilizers can often only be recovered at the end of the year when the payment for the goods is recovered.

From sowing to harvest, various uncontrollable factors and financial pressure in the process have always restricted the expansion and development of planting scale.

The production and capital flow of Kunyuan Taihe have also been tested.

  HSBC's unsecured loan financing helped a lot.

HSBC and McCain Foods have cooperated to provide unsecured loan financing for farmers who grow potatoes in many places, helping farmers obtain financing support in the early stage of spring planting in 2021.

  Not only that, HSBC's assistance is also very humane.

"HSBC's account manager is very conscientious. After the quota was approved, he was very concerned about our material preparation and cultivation progress, ensuring that we can always get financial support from the bank when we need it." Song Cuiling, the founder of Kunyuan Taihe, said.

Even though the north encountered an epidemic this spring, the bank did not delay the loan, and helped us complete the spring plowing on time.

  Song Cuiling said that, unlike most bank loans that are highly dependent on collateral, HSBC granted an unsecured loan line based on the real transaction records with McCann and the credit performance of Kunyuan Taihe, which greatly simplified the loan application process.

  The application of HSBC's smart supply chain, on the basis of the existing traditional credit approval, controls trade performance risks by analyzing the big data of the trade ecosystem, empowers credit approval, improves the timeliness and accuracy of credit approval, and realizes Support for the rural economy and financial inclusion.

  As the world's leading international trade bank, supply chain finance has always been the strategic development focus of HSBC's service trade customer ecosystem. According to the needs and pain points of suppliers, we continue to make breakthroughs and innovative attempts in the field of supply chain financial services, and strive to introduce better overall solutions.

A green supply chain concept with determination in low-carbon transformation

  In the context of "dual carbon", not only energy companies, but every company's environmental responsibility is being quantified and manifested. ESG (Environmental, Social and Corporate Governance) has become the mainstream consensus.

  HSBC's "Asian Supply Chain: Entering a New Era" pointed out that in this survey, more than 88% of the companies surveyed said that they will implement environmental protection policies in place within five years; 54% of multinational companies have begun to implement the framework, and this The proportion is only 19% among local and regional enterprises.

This shows that multinational companies have become pioneers in the field of environmental protection.

  As a financial institution supporting the transition to a low-carbon economy, HSBC has been working hard to advocate and promote green finance.

As early as 2020, HSBC took the lead in introducing SGS, an international professional certification and evaluation agency, to conduct environmental performance assessments of fixed asset loan projects for corporate customers and obtain a certain percentage of financial incentives each year based on carbon emission reductions.

  Recently, HSBC Hong Kong also signed a cooperation agreement with SGS. The two parties will carry out a series of promotional activities to promote low-carbon transformation of enterprises, helping enterprises accelerate their sustainable development process and realize ESG ambitions.

  In addition, HSBC has also set up a Green Finance Committee and launched a series of green financial products.

Specifically, in terms of trade financing, deploy sustainable financial solutions to provide support for trade activities that meet the requirements, such as sustainable trade activities in green environmental protection, clean energy, pollution prevention, and natural resource protection; in terms of trade products, Provide customers with financing and non-financing sustainable products and services covering trade loans, accounts receivable financing, import and export financing, bill discounting, and bank acceptance bill acceptance, etc., to meet the sustainable product needs of customers in all links of upstream and downstream trade .

  It is worth mentioning that the well-known financial magazine "The Asset" announced the winners of the 2022 Triple A Treasury, Trade, Sustainable Supply Chain and Risk Management Awards.

Among them, HSBC China won the regional awards of "Best Digital Trade Finance Solution" and "Best ESG (Environmental, Social and Corporate Governance) Supply Chain Solution".

  The net zero strategy is one of the four strategic pillars of the HSBC Group. HSBC supports China's transition to a net zero economy, assists customers in green and low-carbon transformation, and provides innovative climate solutions, and contributes to the achievement of China's "double carbon" goals.

  Looking ahead, HSBC's professional transaction banking service team is committed to developing more innovative digital tools and financial solutions. In the context of China's adherence to high-level opening up to the outside world and the acceleration of the establishment of a new development pattern, HSBC will continue to play a good role in "bridging East and West". We will fully assist overseas companies to seize opportunities in China and support Chinese companies to explore the global market.