On April 22, at the CCIE 2025 SMM (20th) Copper Industry Conference & Copper Industry Expo – Copper Industry & Financing Innovation Forum, hosted by SMM Information & Technology Co., Ltd., SMM Metal Trading Center, and Shandong Aisi Information Technology Co., Ltd., with Jiangxi Copper Corporation and Yingtan Land Port Holdings Co., Ltd. as the main sponsors, Shandong Humon Smelting Co., Ltd. as the special co-organizer, and Xinhuang Group and Zhongtiaoshan Nonferrous Metals Group Co., Ltd. as co-organizers, Xu Jian, Deputy General Manager of the Commodity Finance Division of the Shanghai Branch of Shengjing Bank Co., Ltd., shared insights on the theme "Reshaping Bank Risk Control Logic to Enhance Financial Service Efficiency—Shengjing Bank's Commodity Industry Chain Financial Solutions."
1. Shengjing Bank
Shengjing Bank Co., Ltd. was established in 1997. It is the earliest established and largest state-owned urban commercial bank in north-east China and the third urban commercial bank in China to establish branches across provinces, following Shanghai Bank and Beijing Bank. On December 29, 2014, Shengjing Bank was successfully listed on the Main Board of the Hong Kong Stock Exchange (Stock Code: 02066). "The Banker" magazine published the 2022 Top 1000 World Banks ranking, in which Shengjing Bank ranked 146th, an improvement of 2 places from the previous year, and ranked 8th among listed urban commercial banks.
The presentation included an introduction to Shengjing Bank's development history and branch network distribution.
2. Shengjing Bank's Products
Shengjing Bank's commodity industry chain financial products are a comprehensive financing product system designed based on the transaction characteristics of bulk commodity industries such as metals, energy chemicals, and agricultural products. Shengjing Bank uses "cargo flow" as the entry point for risk control and product design, innovatively upgrading traditional trade finance products. It also introduces third-party institutions such as futures, insurance, warehousing, and IoT technology service providers to offer specialized services, aiming to mitigate product risks, lower customer entry thresholds, and enhance product universality.
Existing Product System—Implemented "Cargo Pledge" Financing Products
Product Matrix Planning—Comprehensive Industry Chain Financial Product System
3. Product Series—Cloud Warehouse Loan
"Cloud Warehouse Loan" refers to a short-term financing credit business where the applicant pledges bulk commodity spot cargo legally owned or intended to be purchased, stored in warehouses under Shanghai International Port Group Logistics Co., Ltd., and establishes a sell hedge position with the same type and equivalent quantity of the pledged goods through China Construction Bank Futures Co., Ltd. before applying for financing from Shengjing Bank.
Introduction to "Cloud Warehouse Loan" – Product Structure
Product Definition: "Cloud Warehouse Loan" refers to a short-term financing credit business that applicants apply for from our bank, using spot commodities legally held or intended to be purchased by them and stored in warehouses under Shanghai International Port (Group) Co., Ltd. as collateral, after establishing short hedging positions of the same variety and equivalent quantity as the collateral at CCB Futures Co., Ltd.
Introduction to "Cloud Warehouse Loan" – Product Advantages
Introduction to "Cloud Warehouse Loan" – Business Process
Introduction to "Cloud Warehouse Loan" – Application Scenarios
Special Features of "Cloud Warehouse Loan" – Prepayment Financing
She elaborates on the product application cases of "Cloud Warehouse Loan" in revitalizing inventory.
4. Product Series – Warehouse E-Financing
"Warehouse E-Financing" is a financing product provided by Shengjing Bank for warrants registered and effective in the designated systems of the four major domestic commodity futures exchanges. It refers to a short-term financing business that our bank provides to applicants after they pledge warrants legally held or intended to be purchased by them, registered and effective in the domestic futures exchange systems, to our bank, and establish short hedging positions of the same quality and equivalent quantity as the goods under the pledged exchange warrants at a futures company designated by our bank.
Introduction to "Warehouse E-Financing" – Product Structure
She also introduces the functions of "Warehouse E-Financing" – full-process financing scenarios, the application scenarios of "Warehouse E-Financing" – participation in futures delivery, the application scenarios of "Warehouse E-Financing" – integration into spot-futures price spread trading, and product application cases of spot-futures price spread trading.
5. Product Series – Producer-Bank Plus
"Producer-Bank Plus" refers to a prepayment financing product launched by Shengjing Bank for production enterprises, spot trading platforms, and traders of medium size and above. In this business model, Shengjing Bank controls the right to pick up goods or the goods themselves. The seller or the warehousing and supervision institution is entrusted to keep the goods, and provides guarantees for the bank's credit exposure through measures such as the seller's refund commitment or goods repurchase. Shengjing Bank provides working capital loans to the buyer specifically for purchasing goods from the seller. Shengjing Bank notifies the seller or the warehousing and supervision institution to ship/release the goods based on the margin deposited by the buyer. This is a specific trade financing business model.
Introduction to "Producer-Bank Plus" – Product Structure
Product Definition: "Producer-Bank Plus" refers to a prepayment financing product launched by Shengjing Bank for production enterprises, spot trading platforms, and traders of medium size and above. In this business model, Shengjing Bank controls the right to pick up goods or the goods themselves. The seller or the warehousing and supervision institution is entrusted to keep the goods, and provides guarantees for the bank's credit exposure through measures such as the seller's refund commitment or goods repurchase. Shengjing Bank provides working capital loans to the buyer specifically for purchasing goods from the seller. Shengjing Bank notifies the seller or the warehousing and supervision institution to ship/release the goods based on the margin deposited by the buyer. This is a specific trade financing business model.
It also elaborated on the introduction of "Producer-Bank Plus", including product application cases of business processes and comprehensive financial solutions for the industry chain.
6. Cooperation Plan for Trading Platforms
By leveraging the architecture of online trading platforms, it enables the locking of goods, prices, and funds. On this basis, it matches our bank's "Producer-Bank Plus" and "Cloud Warehouse Loan Plus" products to address the issues of insufficient downstream procurement funds during the sales process of upstream enterprises on the platform, as well as the financing needs for the transaction and circulation of in-stock goods. Through the online fund payment system of the trading platform, it enhances business operation efficiency, thereby matching financial products with shorter financing tenors and achieving a full-scenario financial solution for e-commerce trading platforms.
E-commerce platforms for bulk commodities represent the future development direction of spot trading.
"Cloud Warehouse Loan" + "Producer-Bank" address the full-scenario online financing needs.
7. Future Product Planning
The core of product innovation lies in the innovation of risk control logic, which involves effectively identifying business risks while capturing customer segments that are not reached by traditional business logic.
The risk control logic centered on "goods control" helps small and medium-sized banks break free from the traditional risk control system "shackles" that target real estate mortgages and central state-owned enterprises, forming an innovative product system with their own characteristics, achieving higher interest margin returns and deposit scale, breaking away from the homogeneous competition among banks, and achieving a competitive edge through differentiation.
Product Planning - Product Design Direction
Product Planning - Expansion of Collateral Types
Product Planning - Expansion of Cooperative Warehousing through IoT Technology
Product Planning - Expansion of Price Control Methods
Objective - To Build a Full-Scenario Financial Product System for the Bulk Commodity Industry Chain
