BEIJING, Dec. 10 (Xinhua) -- China's factoring industry shrunk by 8.85 percent year on year in 2019, with total factoring volume standing at 1.75 trillion yuan (about 0.27 trillion U.S. dollars), according to a report published recently by China Banking Association (CBA).
Data showed that domestic factoring deals handled by Chinese market players were valued at 1.56 trillion yuan in 2019, down 7.14 percent year on year, while the international factoring business decreased by 25.30 percent year on year to 26.48 billion U.S. dollars during the same period, still representing a narrowed decline.
The report pointed out that the decline was due to global trade tensions, the spread of COVID-19, the tumbled global finance market, and various geopolitical issues, which all contributed to the uncertainties of the market.
However, the CBA still believed the industry will be a promising one as huge demands for factoring are to unleash in the country.
The association added that the industry has become more intelligent, convenient and online-based thanks to the rapid development of "Internet Plus" and fintechs. The country's efforts on resolving financial risks have also provided the industry with an enabling environment.
The report was jointly compiled by China CITIC Bank and 14 major banks including Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB) and HSBC Bank (China).
(Edited by Li Shimeng with Xinhua Silk Road, lishimeng@xinhua.org)
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