The People's Bank of China, together with the National Financial Regulatory Administration, the Supreme People's Court, the National Development and Reform Commission, the Ministry of Commerce and the State Administration for Market Regulation, issued a joint notice to standardise supply chain finance and the use of accounts receivable electronic vouchers, and to steer supply chain information service institutions toward supporting small and medium-sized enterprise financing. The framework sets conduct rules and oversight expectations for core enterprises, commercial banks and third-party platforms that provide systems used to confirm, transfer and finance receivables. For SME protection, core enterprises must pay suppliers promptly, reasonably share supply chain financing costs, and may not use their position to delay payment or impose unreasonable payment terms, including by extending terms through non-cash payment methods. Payment terms for receivables electronic vouchers should generally be within six months and must not exceed one year. Participants are also barred from forcing firms to obtain financing from specified providers at above reasonable market interest rates, while banks are encouraged to broaden supply chain finance models, including exploring “de-core” approaches, and support credit loans and pledges backed by orders, inventory and warehouse receipts. Core enterprises are prohibited from charging chain firms for receivables confirmation, and information service institutions must set reasonable fees, specify who is charged, and disclose or contractually agree the fee schedule. Commercial banks must strengthen risk management, including full-scope monitoring of core enterprises’ liabilities across loans, bonds, bills and accounts payable, and controls to prevent multiple or excessive credit and the use of supply chain finance to exacerbate payment arrears. Supply chain information service institutions must stay within an information service role, and without the required licences may not provide payment settlement, financing guarantees, factoring or lending, or collect funds directly or indirectly; further requirements cover trade-background data collection, controls on voucher transfer layering and abnormal split transfers, system security and data protection, recordkeeping and regulatory reporting, and suspending services for new vouchers for receivables debtors with overdue voucher payments or other specified default indicators. The notice takes effect on 15 June 2025 and envisages a transition period for institutions to seek self-regulatory filing led by the National Internet Finance Association of China, with business data collection and statistical monitoring organised through the Shanghai Commercial Paper Exchange.
Central Bank of the Republic of China 2025-04-30
People's Bank of China and partner agencies issue supply chain finance rules capping receivables e-voucher terms at one year
The People's Bank of China and national regulators issued a notice to standardize supply chain finance and electronic vouchers to support SME financing. The framework sets rules for enterprises, banks, and platforms, emphasizing prompt payments, reasonable costs, and risk management, while restricting information service institutions to non-financial roles without licenses.