(Yicai Global) July 13 -- Bill of exchange loans reached CNY156.4 billion (USD23.38 billion) in May, accounting for 43.5 percent of all new lending to corporations and 15.8 percent of all loans issued that month, according to data from the People's Bank of China.
The tremendous growth in bill of exchange financing has brought the need for a central clearing house in order for China's financial regulators to plan and regulate the development of the BOE market. The clearing house will be set up in Shanghai.
There has been an alarming growth in BOE fraud this year. The Bank of Ningbo Co. declared last week that illegal bill of exchange transactions worth CNY3.2 billion (USD478.3 million) had been carried out by a former employee of its Shenzhen branch.