Events
On January 14, 2022, the central bank and the China Banking and Insurance Regulatory Commission issued the measures for the administration of acceptance, discount and rediscount of commercial bills (Exposure Draft), which revised the Interim Measures for the administration of acceptance, discount and rediscount of commercial bills issued in 1997. The revised draft consists of 8 chapters and 42 articles. On the basis of the 1997 edition, three chapters of "risk control", "information disclosure" and "supervision and management" are mainly added to strengthen qualification management, establish risk control mechanism and protect the rights and interests of small and medium-sized enterprises.
Comments
Note interest rates bottomed out and rebounded, and credit recovery expectations increased. In 1997, the central bank issued the measures. Bills have become an important capital tool for enterprises, which also gave birth to the bank's "filling loans with bills", superimposing the overdue bills of individual real estate enterprises. The market urgently needs to be standardized and developed. By the end of June 2021, bill discounting of listed banks accounted for about 5% of loans, and state-owned banks, joint-stock banks, urban commercial banks and rural commercial banks accounted for 2.15%, 6.43%, 5.34% and 4.51% respectively. In December 2021, financial institutions increased bill financing by 408.7 billion yuan, an increase of 1.55 times month on month. The 7-day national stock and urban commercial bank note rediscount interest rates bottomed out on December 27 (0.02%) and 28 (0.15%) respectively, and returned to the normal level in early January. It can be seen that the expectation of credit recovery is increasing, and banks will increase effective credit supply to improve the overall loan yield.
Clarify the acceptance and discount qualification, and shorten the maximum payment period to 6 months. The revised draft stipulates that (1) the acceptor shall be in good business and financial condition and have the ability to pay when due; The holder's application for discount shall have a real transaction relationship; The discounter is a "legal person with loan business qualification". In combination with the "Document No. 224" of 2016, non bank institutions allowed by supervision are expected to participate, except banks and financial companies. (2) The payment term of e-commerce bills was shortened from 12 months to 6 months as stipulated in "Document No. 2" of 2009, which verified the formulation that the national standing committee "studied shortening the acceptance term of commercial bills from 1 year to 6 months" on May 26, 2021 to support small and micro enterprises and individual industrial and commercial households.
Strengthen risk control, and put a "tight hoop curse" on the scale of acceptance and margin. Article 24 of the revised draft stipulates that "the maximum acceptance balance of banks and finance companies shall not exceed 15% of the total assets of the acceptor, and the margin balance shall not exceed 10% of the deposit scale of the acceptor". The acceptance scale and margin scale are limited. Although some banks may face certain pressure to meet the standard in the short term, this can effectively crack down on bill arbitrage, ensure the due cashing capacity of the acceptor, limit financing bills, and "strict credit" from the source, so as to truly achieve the purpose of strengthening risk control.
Strengthen information disclosure and pay attention to the infrastructure and integrity construction of the bill market. Articles 31 and 36 of the revised draft respectively stipulate that the bill market infrastructure monitors the information disclosure of the acceptor and prompts the market for violations. If the acceptor fails to disclose information as required, it shall not handle bill business, etc., which puts forward higher requirements for information disclosure to reduce market information asymmetry and fraud. Shanghai ticket exchange, which opened in December 2016, has now become the most important "infrastructure" of the bill market. It will later become the main position for information disclosure of the bill market. The platform construction and integrity construction will continue to promote and help the standardized development of the bill market.
Investment advice
As a high-quality asset of financial institutions, Bill assets play an important role in supporting enterprise capital turnover and optimizing credit structure. The revised draft reflects the concept of financial services to the real economy, and the bill market will usher in a new stage of standardized development. As one of the e-bills, the formal implementation of the measures is expected to promote the development of supply chain finance of commercial banks. We suggest paying attention to large joint-stock banks with comprehensive operation advantages and high-quality urban commercial banks that deeply cultivate the local market and focus on small, medium and micro businesses.
Risk tips
The covid-19 epidemic repeatedly led to a decline in economic growth that exceeded expectations; Regulatory policies exceed expectations, etc.
