Sumitomo Mitsui launches bank acceptance draft pooling service in China
The service will provide financing to companies of a corporate group by collateralizing bank acceptance drafts held by other companies of the same corporate group.
Sumitomo Mitsui Banking Corporation (SMBC) has announced that its wholly-owned subsidiary Sumitomo Mitsui Banking Corporation (China) Limited has launched a bank acceptance draft pooling service in China.
The service allows for financing to be provided to companies that are part of a corporate group by collateralizing bank acceptance drafts held by other companies of the same corporate group. Also, the management of drafts held by different group companies through the use of an electronic bill system will be made possible.
The new service in the People’s Republic of China is set to allow SMBC to support customers diversify their financing methods and lower the burden associated with the administration of drafts.
Let’s note that the Chinese financial services market has been attracting overseas financial majors. In November this year, Nomura Holdings announced that its majority-owned securities joint venture in China, Nomura Orient International Securities, received a securities business license from the China Securities Regulatory Commission to operate brokerage, investment consulting, proprietary trading, and asset management businesses. Through the new business, Nomura aims to leverage its global expertise to provide clients with diverse investment products and services for the Chinese market.