Shanghai FTZ Is to Allow Cross-Border Financing Based on Digital Warehouse Receipts
Yicai Global
/SOURCE : Yicai
Shanghai FTZ Is to Allow Cross-Border Financing Based on Digital Warehouse Receipts

(Yicai Global) Oct. 13 -- Commodity traders at the China (Shanghai) Pilot Free Trade Zone will be able to carry out cross-border trade and financing based on digital warehouse receipts.

Commodity Info-tech (Shanghai) Company Ltd., a third party authorized to implement systems to reduce risks during trading and provide credit for commodity trading in the free trade zone, reached an agreement yesterday with MasterCard, ValuePay Finance and Technology (Shanghai) Company Ltd., Malaysia's CIMB Bank, Development Bank of Singapore and Bank of Shanghai that will facilitate online and offline commodity spot trading at the free trade zone.

The warehouse receipt pledge means that enterprises will place goods they own under the care of storage companies which are able to provide warehouse receipt certificates to the banks as collateral for loans.

International trading platforms for nonferrous metals, ferrous metals, rare and precious metals, minerals, farming and energy chemical engineering products will be established in the free trade zone.

Shanghai is China's largest port for importing copper. There are 600 thousand tons of copper in stock in Shanghai's free trade zone, accounting for 57.39 percent of the world's total, according to July statistics.

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Keywords: Shanghai Free Trade Zone