According to news from the Guangdong Branch of the People's Bank, the bank recently guided the Huizhou Branch of the People's Bank in its jurisdiction to adopt a new model of “limited recourse supply chain bill + 'Yueke Rong' rediscounting”, successfully implementing the first limited recourse supply chain bill rediscounting business in the country.
According to a responsible person from Huizhou Branch of the People's Bank, “This innovative method will help to further clarify the parties responsible for bill credit, enhance the transparency and operational efficiency of the bill market, and improve the availability and convenience of discount financing for small and medium-sized enterprises.” Unlike traditional bills, where the endorser often bears joint and several liability, the newly implemented limited recourse supply chain bills are based on the principles of “voluntary participation, autonomous choice, and self-responsibility.” From the issuance stage of the bill, the parties involved voluntarily agree on the scope of recourse rights. The holder of the bill irrevocably waives the right to pursue recourse against all prior parties except the bill acceptor and its guarantors, retaining only the right to pursue recourse against the acceptor and its guarantors.
Since Shanghai Bill Exchange first launched a pilot program for limited recourse supply chain bills, the People's Bank of China's Huizhou Branch has guided supply chain platforms and banking institutions within its jurisdiction to actively promote policy publicity and financing coordination, explore innovations in limited recourse supply chain bill services, and promote the Simple Hub platform to take the lead in launching the first batch of limited recourse supply chain bill business nationwide.
At the same time, by making full use of the “Yue Ke Rong” rediscounting special quota and the “Gong Piao Tong” innovation mechanism, Huizhou succeeded in guiding financial institutions to increase financial support for the field of scientific and technological innovation and small and medium-sized enterprises in the supply chain. So far this year, Huizhou has issued a total of 2.251 billion yuan in rediscount policy funds, of which 1.721 billion yuan has been invested in scientific and technological innovation and 955 million yuan has been used to support supply chain bills.
The successful implementation of this business has achieved full process integration of the “acceptance + discounting + rediscounting” business of limited recourse supply chain bills, which is conducive to the expansion of limited recourse bill business and the exploration of application scenarios, and better gives play to the unique advantages of limited recourse bills in reducing the management costs of accounts receivable bills, isolating the transmission of supply chain risks, optimizing the allocation of credit resources between enterprises, and financial statements.
Reported by: LIU Weiwei, ZHANG Xuhua
