The Dream Factory of China

Source :General Office of Qianhai Authority

The Qianhai Mercantile Exchange (QME) on Aug. 4 successfully helped Sinone, a Tianjin-based renewable resources company, obtain online financing from the Tianjin branch of the Bank of Shanghai with the company’s copper rod warehouse receipts as a collateral.

It is the first green financial service completed by the QME. As a national spot commodity transaction platform, QME has been actively exploring new models to boost the green real economy.

Sinone is an important downstream enterprise of secondary copper in North China. It produces oxygen-free copper rods and other products by extracting secondary copper from scrap.

In this financing service, QME converted the oxygen-free copper rods produced by Sinone into standardized digital warehouse receipts, and realized the transparency and traceability of the full life cycle of the spot commodity by using technologies such as the Internet of Things, blockchain, and intelligent identification. This served as an important premise and core foundation for risk control for the bank to carry out online financing backed by electronic warehouse receipts, and effectively helped the enterprise obtain financial support for purchasing scrap resources.

China is the world’s largest copper producer and consumer. In 2020, China’s copper consumption exceeded 14 million tons but its secondary copper production reached 3.25 million tons, which accounted for over 30 percent of total copper supply. The secondary copper industry in China has achieved 100-percent loss-free recycling and recycling waste copper requires only 13 percent of the energy consumption for refining copper ore, which is much lower than needed for other metal materials.

In the future, QME will continue to promote the healthy development of green finance, and strive to launch more green financial products and innovative services.