On February 6, the People's Bank of China, the State Administration of Financial Supervision, the Supreme People's Court, the National Development and Reform Commission, the Ministry of Commerce and the State Administration of Market Supervision issued the Notice on Regulating Supply Chain Financial Business and Guiding Supply Chain Information Service Institutions to Better Serve SME Financing (Draft for Comments) (hereinafter referred to as the Notice), and solicited public opinions. Industry insiders believe that the "Notice" will further strengthen the standardized management of supply chain finance business, optimize the financing environment for small and medium-sized enterprises, and have a positive impact on the optimization of financial institutions' business models and the improvement of the supply chain finance ecosystem. In recent years, with the accelerated development of supply chain finance, some financial institutions, supply chain core enterprises, and third-party companies have been building supply chain information service systems to provide information services and technical support for various supply chain finance activities. There are some hidden problems and risks in the development of supply chain finance business. The drafting explanation of the Notice proposes that the relevant business development is in a regulatory blind spot, there is a risk of excessive credit expansion in core enterprises, and the supply chain information service system lacks necessary standards and management norms. Zeng Gang, Chief Expert and Director of Shanghai Finance and Development Laboratory, stated that the "Notice" aims to improve the quality and efficiency of supply chain finance services, especially support for small and medium-sized enterprises, by clarifying the direction of supply chain finance, regulating management, and promoting digital transformation; By strengthening risk prevention and control measures, we can better maintain the stability of the financial system and promote the healthy development of supply chain finance business. The Notice consists of 21 articles, mainly including three aspects: clarifying the connotation and direction of supply chain finance development, and safeguarding the rights and interests of small and medium-sized enterprises; Standardize the supply chain finance management of commercial banks and effectively prevent business risks; Clarify the basic framework for standardized management of electronic accounts receivable vouchers. In terms of clarifying the connotation and direction of supply chain finance development, the "Notice" requires that the development of supply chain finance should be based on serving the real economy, serving social livelihoods, and serving national strategies; Core enterprises in the supply chain should pay small and medium-sized enterprises in a timely manner, and should not use their advantageous position to delay payments to small and medium-sized enterprises, or improperly increase their accounts receivable; Supply chain information service agencies should adhere to the positioning of information services, not directly or indirectly collect funds, and prevent information intermediaries from becoming credit intermediaries. This helps small and medium-sized enterprises to obtain more equitable financing opportunities and alleviate the financial pressure they face in the supply chain due to weak bargaining power. Encourage financial institutions and supply chain information service providers to develop more financial products suitable for small and medium-sized enterprises through policy guidance Zeng just said. In order to effectively prevent business risks, the Notice also requires commercial banks to improve supply chain finance credit risk management, strictly control the risk exposure of core enterprises, and strictly prevent multi credit, excessive credit, and the use of supply chain finance business to exacerbate upstream and downstream account arrears of core enterprises. The Notice has a substantial driving effect on implementing the requirements of comprehensively strengthening financial supervision and legally incorporating all financial activities into regulation Xiao Xiaohe, Executive Dean of the Jiuyin Bill Research Institute at Jiangxi University of Finance and Economics, believes that the "Notice" requires commercial banks to strictly fulfill their main responsibilities such as loan investigation, risk assessment, credit management, and loan fund monitoring, as well as to standardize measures such as supply chain finance business cooperation management. This is very beneficial for actively and orderly, sound and compliant development of supply chain finance business, and effectively preventing business risks. The Notice on Strengthening Timely Payment of Accounts for Small and Medium sized Enterprises also clarifies the basic framework for standardized management of electronic vouchers for accounts receivable. This is considered a key aspect by industry insiders. Electronic accounts receivable vouchers are often referred to as "credit notes", "financial statements", or electronic "IOUs". This product emerged in 2015, where core enterprises issued electronic debt certificates for accounts payable to suppliers on supply chain finance platforms based on trade backgrounds, promising to pay upon maturity. The Notice defines electronic accounts receivable vouchers as electronic records issued by core enterprises in the supply chain and other accounts receivable debtors to accounts receivable creditors through the supply chain information service system based on real trade relationships, promising to pay corresponding amounts on time. According to the drafting instructions of the Notice, some core supply chain enterprises have opened electronic accounts receivable vouchers through the supply chain information service system for the purpose of confirming, transferring, and financing accounts receivable of enterprises in the supply chain. This has been welcomed by supply chain enterprises and has played a positive role in improving the collection security and financing accessibility of small and medium-sized enterprises, and promoting the development of supply chain finance. The Notice requires strengthening the authenticity management of trade background, enhancing timely payment of accounts for small and medium-sized enterprises, effectively preventing credit risks for core enterprises, enhancing the security of clearing and settlement business funds, establishing a multi-level risk monitoring and management system, and ensuring a smooth transition of market institutions. Zhao Cila, a senior researcher at the Jiuyin Bill Research Institute of Jiangxi University of Finance and Economics, stated that the "Notice" specifies the terms, financing entities, and prohibition of rebates for electronic accounts receivable vouchers. Zhao Cila further analyzed that the issuance of electronic accounts receivable vouchers is limited to accounts payable with a real trade background, and cannot be based on prepayments. Explicitly limit the financing entities to banking institutions, corporate finance companies, and commercial factoring. In terms of prohibiting rebates, the Notice clearly prohibits obtaining improper fee refunds or infringing on the legitimate rights and interests of on chain enterprises, which will help reduce the financing costs of small and medium-sized enterprises; In terms of payment terms, the Notice specifies that the payment period for electronic vouchers of accounts receivable should generally be within 6 months, with a maximum of 1 year. For those exceeding 6 months, commercial banks should strengthen their review of the reasonableness of payment terms and industry settlement practices. Zhao Cila stated that overall, the Notice has strengthened the standardized management of electronic vouchers for accounts receivable, enhanced risk prevention and control in supply chain finance, and optimized the financing environment for small and medium-sized enterprises. Although it may have a certain impact on the volume of related business in the short term, in the long run, the standardization of related business will contribute to the healthy development of supply chain finance. (New Society)