Over the years, China has been well known for being particularly opaque with regards to data and information about its economy as well as companies. However, things are changing rapidly in the country as the Chinese leadership tries to position the country as the next great superpower. In a new development, it has been reported that China is now in the process of creating a new platform which will allow those involved in supply chain finance to access key information about companies. The companies in question are going to be small to medium-sized ones as well as those which are classified as micro-enterprises.
The platform will be engaged in diligently collecting all the relevant information with regards to these firms and make it easily available to those who want to look it up. The National Internet Finance Association of China (NIFA) released a statement with regards to this development and said,
The platform will collect, organize and process information of these firms comprehensively from related supply chains and industry chains to depict such firms at different levels in a complete business network.
At the end of the day, many smaller firms and micro-enterprises suffer from an inability to finance their businesses due to the unavailability of key information with regards to their operations.
Moreover, financial institutions might not completely trust the information that is furnished by these companies. However, with the emergence of a reliable third party, it will be easier for financial institutions to look up any information they want and then decided on the possibility of financing a business. A representative of NIFA stated,
The platform will provide such firms with low-cost and sustainable financial services while enabling financial institutions to identify clients accurately to control risks of lending.
He went on to state that the new platform will also be an immense boost for the country’s ever-growing tech and Fintech sector. Many upcoming small techs and Fintech firms looking for seed funding could also find it easier to get the necessary finance to kick-start their companies.