For the purpose of enhancing cooperation between commercial factors and municipal and agricultural banks, CFEC successfully held a forum with the theme of Working together for the future of factoring on January 18, 2018. The Forum took place in Shenzhen, the pioneer city of the Reform and Opening-up Policy of China. About 200 representatives from CFEC's member factors, banks and securities firms attended the forum.
According to the State Statistical Bureau, the receivables of industrial enterprises with annual prime operating revenue above 20 million RMB realized a year-on-year increase of 8.1%, surpassing 13.9 trillion by the end of November 2017.
In order to reduce the scale of receivables, increase cash flow and to solve financing problems, factoring has become a primary means for SMEs.
At the same time, finding good source of funds for commercial factors has been increasingly challenging, especially since the National Financial Work Conference in 2017, the concern of curbing risks of state-owned banks has resulted in not only the sharp decline of bank factoring volumes, but also the narrower financing for commercial factors, while the real economys demand for factoring remains strong. In contrast, municipal and agricultural banks are more willing to involve themselves in commercial factoring business with effective and flexible decision making policies though their size of capital may be limited. Therefore, CFEC believes that the cooperation between commercial factors and non-state-owned municipal & agricultural banks may be a new trend in the future.
Aiming at discussing the rationality and feasibility of such new trend, the forum provided a good opportunity for direct communication among the relevant parties.
