Call for stronger supply chain finance industry

A lawmaker suggested Shanghai should further promote the development of the supply chain finance industry and especially offer support to small and medium enterprises. 

Xu Zengzeng, a deputy to the Shanghai People's Congress from Pudong District, said that authorities has laid increasingly emphasized development of the supply chain finance industry, and SMEs can play an important role in maintaining its long-term stability and vitality.

At present, SMEs in the city still face problems in their development, such as high production costs and difficulty in raising funds, Xu said.

She suggested the government can help set up an investment fund for the supply chain finance industry, and increase investment into the core enterprises and organizations in this industry to provide a solid capital base for developing supply chain finance.

"Also, we should enhance the combination of blockchain technology and supply chain finance, as blockchain technology with the features of decentralization, immutability, security and transparency can help promote the development of online and intelligent supply chain finance," Xu said.