Prof. Tao and President Lin Junhao inaugurating the “Postdoctoral Cooperative Research Base”
On the afternoon of December 9, 2021, the signing and inauguration ceremony of the postdoctoral cooperative research base between SZU Postdoctoral Program in Theoretical Economics and an alumni enterprise - Guangdong Shangpiaoquan Technology Group Co., Ltd. (Shangpiaoquan) was held at Shenzhen Bay Eco-Technology Park, Nanshan District.
The ceremony and exchange meeting were attended by Prof. Tao Yitao, Director of China Center for Special Economic Zone Research (CCSEZR), Shenzhen University (CCSEZR) and President of Belt and Road Research Institute (Shenzhen) for International Cooperation and Development (BRRI); Prof. Zhong Ruoyu, former Standing Committee Member of the Party Committee and Vice President of Shanxi University of Finance and Economics and Head of SZU Postdoctoral Program in Theoretical Economics of CCSEZR; Huang Shun, President of SZU Alumni Association; Zeng Yuhua, Managing Director of Dongguan Huarui Real Estate Co., Ltd.; Lin Junhao, President of Shangpiaoquan; Zeng Zhaoyong, Director of Risk Control and Chief Strategy Officer (CSO) of Shangpiaoquan; as well as Vice President and Managing Director of Shangpiaoquan and heads of other relevant departments.
Shangpiaoquan was founded in 2017 by President Lin Junhao and headquartered in Shenzhen. It is a national hi-tech enterprise, deputy director unit of the Bill Broker Committee of China Association of Trade in Services (BBC-CATIS), and director unit of Shenzhen Supply Chain Finance Association (SSCF). As the pioneer and leader in the financial technology platform for commercial bill supply chain in China, Shangpiaoquan is committed to using technologies and systems to link the highly-rated credit of core enterprises and the abundant low-cost funds from mainstream financial institutions to precisely irrigate the real economy and effectively alleviate the "financing difficulties and constraints" faced by small and micro enterprises, with the mission of "making enterprise financing simpler”.
At the exchange meeting, President Lin Junhao first introduced the original aspiration, idea, ways, achievements and future plan for the development of Shangpiaoquan. He expressed that the problem of financing difficulties faced by micro, small and medium-sized enterprises (MSMEs) is worldwide and has very important social significance and economic benefits if solved. Shangpiaoquan aimed at solving this problem as a task. The People's Bank of China (PBoC) and other ministries and commissions have mapped out the direction and launched a series of policies in this regard. Based on the policies, Shangpiaoquan took its creative "precise irrigation" and “Two large enough, and two small enough (i.e., mainstream financial institutions and core enterprises should be large enough, and financing enterprises and single bill amount should be small enough)” as the solution, positioning itself as a technology platform to play the role of "bridge, link and lubricant" in the finance supply chain.
President Lin Junhao made an analogy for this: “MSMEs are like farmlands on a hillside in urgent need of irrigation, and banks are like reservoirs. Although the reservoirs have a large amount of water, how can they irrigate the farmlands higher than them? Our solution is to provide pressurized (credit enhancement) delivery of water with a pump (core enterprise), and then allow the water to flow through the pipeline in multiple stages. In the process of irrigation, the water system (i.e., the financial technology platform for commercial bill supply chain) controls the water volume and conducts precise irrigation to effectively alleviate the financing difficulties and constraints faced by MSMEs.” But the basic requirements of the "Two large enough, and two small enough” must be emphasized during implementation. As the main source of fund supply, mainstream financial institutions may solve the problem of "financing constraints” faced by MSMEs if the funds they supplied are low enough; and the credit of the core enterprises may be used as an endorsement if they are strong enough, which may help keep the smooth payment of commercial bills and reassure the banks to continue to supply funds to MSMEs, making the problem of “financing difficulties" alleviated. The "two small enough" mainly focuses on private enterprises and takes the real trade background as the premise to truly benefit the MSMEs. President Lin Junhao also emphasized that Shangpiaoquan spent a year to develop cooperation with China Construction Bank Shenzhen Branch (CCB) in the process of solving the problem. On March 16, 2020, the joint product [Commercial Bill Express Loan] of Shangpiaoquan and CCB was launched and its first loan was reached. So far, all the business with CCB has not been overdue and there has not been any credit risk or operational risk. The successful first cooperation between Shangpiaoquan and CCB marked the official launch of a new scenario of inclusive finance in the commercial bill supply chain for small and micro enterprises.
In the following year, Shangpiaoquan developed cooperation with more than 10 banks successively. The innovative practice of direct connection of commercial bills between banks and enterprises in cooperation with ICBC and other large state-owned banks had attracted the attention of PBoC. In late September 2021, Shenzhen Central Branch of the PBoC invited Shangpiaoquan through ICBC Shenzhen Branch to participate in a symposium on bill business models.
Shangpiaoquan gained considerable growth in scale with the advantage of the Internet. It achieved a loan amount from RMB 10 billion to RMB 20 billion in just 13 months, which was 14 months shorter than the time used to reach the first 10 billion! As of December 1, 2021, the total financing amount supported by Shangpiaoquan for MSMEs had exceeded RMB 21.1 billion, with 32,688 transactions and an average of RMB 650,000 per transaction; 49,335 enterprises had registered on the platform, and the loan interest rate had dropped from 5.5% to 3.85%.
President Lin Junhao introduces the development of his enterprise
At the exchange meeting, President Huang Shun stated: “The Report to the 19th National Congress of the CPC pointed out that talent is a strategic resource to achieve national rejuvenation and win the initiative in international competition. Using, respecting and fostering talented people are important measures for enterprises to achieve innovative development and to participate in the competition. Today, the alumni enterprise and the alma mater SZU signed a contract on the postdoctoral research base, which will provide a broader development prospect for fostering talented people and technological innovation, and make the postdoctoral research program easier to be implemented. In addition, SZU Alumni Association will provide contact and interpersonal network services to empower the value of alumni enterprises.” He also expressed his great honor to witness this cooperation between the alumni enterprise and the alma mater SZU, and congratulated both sides for the fruitful cooperation.
President Huang Shun delivers the speech
At the exchange meeting, Prof. Tao said that the postdoctoral cooperative research base of Shangpiaoquan was the first cooperative platform established in alumni enterprises by SZU Postdoctoral Program in Theoretical Economics of CCSEZR, which had a unique significance. As a financial innovation tool and platform, Shangpiaoquan had demonstrated the innovative spirit of President Lin Junhao and his team, and the realistic philosophy of SZU. She further stated that the introduction made by President Lin Junhao about the development, business and future planning of Shangpiaoquan reminded her of other outstanding alumni of SZU, such as Pony Ma, Zhou Haijiang and Shi Yuzhu. From the growth of Shangpiaoquan, we saw the passing on of the spirit of SZU, the continuation of the character of Shenzhen, and the future of the development of Shenzhen inspired by the spirit of innovation. Shangpiaoquan was the epitome of thousands of outstanding students of SZU. It was the enterprise created by the alumni of SZU, and would become the base of high-caliber talent development in SZU. The establishment of the postdoctoral cooperative research base would also provide a new platform for postdoctoral research linking theory with practice.
Prof. Tao delivers a speech at the signing ceremony and exchange meeting
Prof. Tao concluded that Shangpiaoquan was helping solve a major problem raised by China, that is, Shangpiaoquan had perfectly explored a way to solve the problem of financing difficulties and constraints faced by MSMEs through financial instruments and derivative products by using big data and modern science and technology. Shangpiaoquan was both a technical and institutional innovation. It is important for the future development of fintech by solving the financing difficulties faced by MSMEs through this new and convenient institutional channel. The joint establishment of the postdoctoral cooperative research base by SZU and Shangpiaoquan was also based on the consideration of linking theory with practice. We are willing to make it a model of cooperation between SZU and alumni enterprises, develop applicable and innovative talented people with this platform, and expand the path of innovative development for the SZU Postdoctoral Program in Theoretical Economics.
Prof. Tao makes the summary
A scene of the exchange meeting
Subsequently, Prof. Zhong Ruoyu, on behalf of SZU, and President Lin Junhao, on behalf of Shangpiaoquan, signed the "Letter of Intent Cooperation Agreement”.
Prof. Zhong Ruoyu and President Lin Junhao sign the "Strategic Framework Agreement for Cooperation”
Before signing the agreements, President Lin Junhao led Prof. Tao and the delegation to visit the office of Shangpiaoquan and introduced the development history, business status, corporate culture and future planning.
Office environment of Shangpiaoquan
Prof. Tao and President Lin Junhao at the inauguration ceremony
CSO Zeng Shaoyong holds the ceremony and exchange meeting
In the future, Shangpiaoquan will continue to uphold the vision of "building an intelligent financial supply chain ecosystem", follow the changes in policy planning and industry trends, strengthen industry-university cooperation to develop innovative talented people, expand talent pipeline for the financial supply chain, and gradually move into a new stage of high-level, multi-matrix collaborative development.
