On December 22, 2005, the signing ceremony on the Cooperation Agreement between Banks and Corporations was held between China National Materials Storage and Transportation Corporation (CNMSTC) and China Construction Bank Co., Ltd. Both parties will join hands to seek common development and win-win results in the field of logistics finance.

CCB indicated that as the first of the four state-owned commercial banks listed successfully in Hong Kong after the shareholding reform, CCB always follows the concept of putting customers first and giving priority to innovation. Based on the needs and choices of clients from SMEs, CCB takes active measures to develop customized financial products and services to meet different financial needs of SMEs from different regions and different industries. CCB designs standardized products, optimizes the credit procedure, simplifies the procedure for examination and approval, lowers the management cost and increases the working efficiency. Since 2001, CCB has made active attempts in the pledge financing business. Within the scope of cooperation, CNMSTC will supervise the cargo, pledge of warehouse receipts, pledge of chattels, designated payment and buyer’s credit for CCB. Furthermore, in light of the business distribution in different regions and industry characteristics and based upon the principle of “introducing a service when it is mature”, branches and subsidiaries of both parties will launch cooperation in local regions on specific business.

CNMSTC noted that, as a logistics corporation having the largest pledge supervision business and a nationwide warehousing network, CNMSTC aims at promoting the integration of warehousing business with financial business and exploring innovative models in logistics finances by leveraging its extensive outlets, advanced management, good reputation and the fair and independent third party position, relying on strong collaboration with CCB, and grasping the chance of being the first to develop such cooperation in the field of logistics finance.

It is introduced that along with the development and improvement of the financial market and services, financing services provided by commercial banks are shifting from “single financing” to “whole-process financing”. The financial services provided by banks have covered both downstream and upstream customers of enterprises and touched upon every link of supply, production, transportation and distribution. The logistics corporations may increase the support and value-added warehousing services and enhance the overall competitive strength by providing pledge supervision services for clients. Banks may decrease and diversify loan risks, increase the financing efficiency and better integrate into the chain of production, sales and supply by introducing warehousing corporations, trusted by both banks and clients, as third parties to participate in the pledge supervision. As for the borrowing enterprises, especially SMEs, the financial support to the supply chain will help them better deal with inventory and non-performing funds, relieve their fund shortages and achieve business expansion and development. The cooperation between CCB and CNMSTC will target SMEs and the products will be designed for them. CCB and CNMSTC will introduce the whole process financing, commodity pledge and supervision by the independent third parties, emphasize cash repayment ability and resolve the financing problems of SMEs technically.