Bill financing has become an important financing channel for SMEs, as it is more flexible and affordable, helping to lower the financing costs of private and small companies. Image: iStock

According to the Monetary Policy Department of the People’s Bank of China, the rapid growth of bill financing in January helped to underpin the real economy, in an op-ed piece published on Financial News, a newspaper run by the PBOC.

After the central bank released its January financial data last week, the rapid growth of bill financing and undercounted bankers’ acceptances has caused market attention, and some analysts believe that the surge is due to the fact that companies arbitrage from banks through a combination of discounted bills and structured deposits. Such views are not accurate, the PBOC claimed.

The discount rate of bills is down, so enterprises are more willing to finance through bills. Compared to borrowing from banks, bill financing has become an important financing channel for SMEs, as it is more flexible and affordable, helping to lower the financing costs of private and small companies and thus support the real economy, it said.

Some enterprises deposit the funds they have financed, instead of investing in their production, hoping for arbitrage from the bank. But there is no arbitrage space any more, as the structural deposit interest rate returns to a reasonable level, the PBOC insisted.

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now. 

Join the Conversation

21 Comments

  1. Howdy fantastic blog! Does running a blog such as this require a great deal of work?
    I’ve no knowledge of programming however I was hoping to start my own blog in the near future.

    Anyhow, if you have any suggestions or tips for new blog owners please share.
    I understand this is off subject however I simply had to ask.

    Cheers!

  2. You actually make it seem so easy with your presentation but I
    find this topic to be actually something that I think I would never understand.
    It seems too complicated and extremely broad for me. I am looking
    forward for your next post, I’ll try to get the hang of it!

  3. Hmm it looks like your website ate my first comment (it was super long)
    so I guess I’ll just sum it up what I wrote and say,
    I’m thoroughly enjoying your blog. I as well am an aspiring blog
    blogger but I’m still new to the whole thing.

    Do you have any tips for newbie blog writers? I’d really appreciate it.

  4. I’ve been surfing online more than 4 hours today,
    yet I never found any interesting article like yours.
    It’s pretty worth enough for me. In my opinion, if all site owners
    and bloggers made good content as you did, the net will be a lot more useful than ever before.

  5. Do you mind if I quote a few of your posts as long as I provide credit and sources back to your website?
    My blog site is in the very same niche as yours and my visitors would genuinely benefit from some of the information you provide here.

    Please let me know if this okay with you. Appreciate it!

  6. hello there and thanks on your info – I’ve definitely picked up something new from right here. I did then again experience several technical points the usage of this site, as I skilled to reload the site a lot of instances previous to I could get it to load correctly. I have been thinking about in case your web host is OK? No longer that I’m complaining, but slow loading circumstances times will very frequently have an effect on your placement in google and could harm your quality score if advertising and ***********|advertising|advertising|advertising and *********** with Adwords. Well I am including this RSS to my e-mail and could glance out for a lot more of your respective exciting content. Make sure you update this again very soon..

  7. Hi there all, here every one is sharing these kinds of know-how, so it’s good to
    read this webpage, and I used to go to see this webpage every day.
    natalielise plenty of fish

  8. I’m really enjoying the theme/design of your blog. Do you ever
    run into any browser compatibility issues? A number of my blog audience have complained about my site not
    working correctly in Explorer but looks great in Chrome. Do you have any solutions to help
    fix this problem?

  9. excellent put up, very informative. I ponder why the opposite experts of this
    sector don’t realize this. You must proceed your writing.
    I’m sure, you’ve a great readers’ base already!

  10. Thanks , I’ve recently been searching for information about this
    subject for a long time and yours is the best I have came upon till now.
    But, what in regards to the conclusion? Are you positive
    concerning the source?

  11. We are a group of volunteers and starting a new scheme in our community.
    Your website offered us with valuable information to work on. You have
    done a formidable job and our whole community will be
    thankful to you.

Leave a comment

Your email address will not be published. Required fields are marked *