China Supply Chain Financing Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2029) | > 10.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Supply Chain Financing Market Analysis
The China Supply Chain Financing Market is expected to register a CAGR of greater than 10% during the forecast period(2024-2029).
Its goal is to make the supply chain more financially efficient and to cut buyers' and sellers' working capital by a large amount. It lets buyers extend the time they have to pay, and it gives suppliers access to better financing rates.
The pandemic changed the way people bought things in a big way across all industries, from where raw materials came from to how people got what they needed. In 2020, the Indian market dropped by a huge amount because of the COVID-19 pandemic. Remote work and social distance made it more likely for unregistered channels to be used to spread false information about trades. During the pandemic, however, organizations made their supply chain operations safer by changing them all the time, adapting to the technological revolution, and driving the growth of the supply chain finance industry.
The Chinese government has been encouraging the growth of supply chain finance as a way to boost the real economy. It has also put in place a number of rules and policies to speed up the development and innovation of the supply chain finance industry, with a focus on improving financing and liquidity conditions for businesses along supply chains through digital channels. With help from the government, financial institutions look for new ways to offer more services to small businesses along industry chains, support big construction projects and the growth of core industries, and help the real economy grow. Technology solutions for supply chain finance can make it easier to share information, drive standardization and automation across supply chains, and allow for more data-driven risk management. This will help lower financing costs and improve operational efficiency in the long run. CIC says that more and more financial institutions and anchor enterprises are using integrated technology solutions to digitize and simplify asset collection and verification, financing, and other workflows in supply chain finance in order to improve operational efficiency.
China Supply Chain Financing Market Trends
Incorporation of New Novel Technologies
The supply chain finance market is expected to experience significant growth, considering the launch of technologically advanced solutions to streamline trade activities. Several organizations are actively strengthening the technology infrastructure for overcoming long-standing issues of high transaction costs and processing costs and mitigating the huge supply chain finance gap. Some service providers have adopted 5G and blockchain technology. DBS, for example, is assisting enterprises in the Asia-Pacific region in gaining access to more affordable working capital globally through the use of its portfolio of technologies, which includes APIs, blockchain, and collaborations with fintech and e-procurement platforms. Its digital solutions have assisted businesses of all sizes in transitioning to paperless transactions, resulting in increased efficiencies and cost savings in their supply chains.
New Agreements and Financing SME
In 2021, there were about 38 million SMEs in China. These businesses made up more than 98% of all Chinese businesses. SMEs represent a critical component of China's economy, as they contribute more than 60% of the national GDP. However, their growing liquidity demand is largely unmet by financial institutions. New agreements between cross-border countries provide major opportunities in terms of labor productivity, permit a greater use of machinery, overcome technical support, stimulate innovations, and enable countries to enhance their economic development. Such agreements improve local credit by lowering the cost of borrowing or financing expansion and empowering domestic and small and medium-sized enterprises in the market. For instance, Olea expanded their cross-border offering, completing their first digital cross-border receivables finance transaction for SUMEC, a state-owned firm and important member of China National Machinery Industry Corporation, in June 2022. Supply-chain finance providers reduce the financing gaps faced by SMEs to help them become part of the global trading system, and the rising total value of international trade imports and exports is driving the market. SME contributions account for over 60% of total GDP and are directly proportional to GDP growth. SMES contribute substantially to China's economy, including about 80 percent of non-government employment.
China Supply Chain Financing Industry Overview
Supply chain finance providers are increasing in scale and product range, but delivery tends to be fragmented. Transparency is even more critical as supply chain finance becomes a haven for nonbanks and fintechs looking to disrupt the field by leveraging the latest technologies, such as artificial intelligence, blockchain, and tokenization. Some of the major players dominating the market are Deutsche Bank AG, dbs bank Ltd., Bank of China, Pei An Bank, Standard Bank, Flexport, the Industrial and Commercial Bank of China, HSBC Bank, and Citibank.
China Supply Chain Financing Market Leaders
-
Deutsche Bank AG
-
DBS Bank Ltd
-
Bank of China
-
HSBC Bank
-
Citibank
*Disclaimer: Major Players sorted in no particular order
China Supply Chain Financing Market News
- October 2023: DBS launched its first hybrid financing solution to help small and medium enterprises (SMEs) access a wider pool of capital to finance their sustainability journeys.
- May 2022: Zhongyuan Bank Co., Ltd. (SEHK:1216) acquired Bank of Luoyang Co. ,Ltd., Bank of Pingdingshan Co., Ltd,. and Bank of Jiaozuo China Travel Services Co., Ltd. on The transaction has received approval from The China Banking and Insurance Regulatory Commission. The Bank also obtained the anti-trust clearance in connection with the Merger by Absorption by State Administration for Market Regulation of PRC
- December 2022: Citi announced that it would wind down its consumer banking business in China which is part of its broader global strategy refresh to exit consumer franchises in 14 markets in Asia, Europe, the Middle East and Africa, and Mexico.
China Supply Chain Financing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Latest Trends and Technological Innovations in the Industry
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Offering
5.1.1 Export and Import Bills
5.1.2 Letter of Credit
5.1.3 Performance Bonds
5.1.4 Shipping, Guarantees
5.1.5 Other Offerings
5.2 By Provider
5.2.1 Banks
5.2.2 Trade Finance House
5.2.3 Other Providers
5.3 By Application
5.3.1 Domestic
5.3.2 International
5.4 By End-User
5.4.1 Large Enterprises
5.4.2 Small and Medium-sized Enterprises
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Deutsche Bank AG
6.2.2 DBS Bank Ltd
6.2.3 Bank of China
6.2.4 Ping An Bank
6.2.5 Standard Bank
6.2.6 Flexport
6.2.7 Industrial and Commercial Bank of China
6.2.8 HSBC Bank
6.2.9 Citibank
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
China Supply Chain Financing Industry Segmentation
Supply chain finance aims to improve the financial efficiency of the supply chain and substantially reduce the working capital of both buyers and suppliers. This report aims to provide a detailed analysis of the supply chain financing market in China. The report focuses on market dynamics, emerging trends in the segments, and insights into various product and application types. Also, it analyzes the key players and the competitive landscape in the supply chain financing market in China.
The Chinese Supply Chain Financing Market Is Segmented By Offering (Export And Import Bills, Letters Of Credit, Performance Bonds, Shipping, Guarantees, And Others), By Provider (Banks, Trade Finance Houses, Others), By Application (Domestic, International), And By End User (Large Enterprises, Small And Medium-Sized Enterprises). The Report Offers Market Size And Values (USD) During The Forecast Years For The Above Segments.
| By Offering | |
| Export and Import Bills | |
| Letter of Credit | |
| Performance Bonds | |
| Shipping, Guarantees | |
| Other Offerings |
| By Provider | |
| Banks | |
| Trade Finance House | |
| Other Providers |
| By Application | |
| Domestic | |
| International |
| By End-User | |
| Large Enterprises | |
| Small and Medium-sized Enterprises |
China Supply Chain Financing Market Research Faqs
What is the current China Supply Chain Financing Market size?
The China Supply Chain Financing Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)
Who are the key players in China Supply Chain Financing Market?
Deutsche Bank AG, DBS Bank Ltd, Bank of China, HSBC Bank and Citibank are the major companies operating in the China Supply Chain Financing Market.
What years does this China Supply Chain Financing Market cover?
The report covers the China Supply Chain Financing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Supply Chain Financing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Supply Chain Financing Industry Report
Statistics for the 2024 China Supply Chain Financing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Supply Chain Financing analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
