Market Size of China Supply Chain Financing Industry
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 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 Size Summary
The supply chain financing market in China is poised for substantial growth, driven by the need to enhance financial efficiency within supply chains and reduce working capital requirements for both buyers and sellers. This market is experiencing a transformation due to the pandemic, which prompted organizations to adapt their supply chain operations by embracing technological advancements. The Chinese government's supportive policies and regulations aim to bolster the real economy by improving financing and liquidity conditions through digital channels. Financial institutions are increasingly leveraging technology solutions to streamline operations, reduce costs, and enhance data-driven risk management, thereby improving operational efficiency and lowering financing costs.
The market is characterized by the active involvement of financial institutions and anchor enterprises in adopting integrated technology solutions to digitize and simplify various workflows. The presence of a large number of SMEs, which are crucial to China's economy, presents both challenges and opportunities. Despite their significant contribution to GDP, SMEs often face liquidity challenges that supply chain finance providers aim to address. The market is also witnessing the adoption of advanced technologies like 5G and blockchain to overcome traditional barriers such as high transaction and processing costs. Major players in the market, including Deutsche Bank AG, DBS Bank Ltd., and others, are expanding their product offerings and scaling operations to meet the evolving demands of the market, while also navigating the competitive landscape shaped by nonbanks and fintechs.
China Supply Chain Financing Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Buyers
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1.4.2 Bargaining Power of Suppliers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitutes
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1.4.5 Intensity of Competitive Rivalry
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1.5 Insights on Latest Trends and Technological Innovations in the Industry
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1.6 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Offering
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2.1.1 Export and Import Bills
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2.1.2 Letter of Credit
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2.1.3 Performance Bonds
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2.1.4 Shipping, Guarantees
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2.1.5 Other Offerings
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2.2 By Provider
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2.2.1 Banks
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2.2.2 Trade Finance House
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2.2.3 Other Providers
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2.3 By Application
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2.3.1 Domestic
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2.3.2 International
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2.4 By End-User
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2.4.1 Large Enterprises
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2.4.2 Small and Medium-sized Enterprises
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China Supply Chain Financing Market Size 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.