Minsheng Bank launches stone industry chain finance

Shuitou Town, Nan'an County, Quanzhou, Fujian Province is the largest stone distribution center in China. There are more than 1,500 stone processing enterprises with an average registered size of 12.8 million yuan and 8 enterprises with an output value of more than 400 million yuan, accounting for 40% of the country. The head office-level stone industry finance division to be established by Minsheng Bank is located here.

Minsheng Bank, which is located in the “industrial chain finance”, has launched its financial industry chain financial services this year. The development idea of ​​Dong Wenbiao, Chairman of Minsheng Bank, is that in the next three years, the Stone Finance Division will “stand on the water and radiate the whole country”, focusing on the two key links of mining and sales, and set up a professional team to effectively launch through credit resources. Cultivate core competitiveness by combining project orders and new mines.

Although the stone industry's total industry scale exceeded 400 billion yuan last year, which is insignificant relative to the energy and real estate industries, Minsheng Bank believes that financial services will be profitable through financial operations integration of industrial upgrading.

Develop seven business models

There is no such thing. It is not a bank of Minsheng that has taken a fancy to the Shuitou Stone Trading Market. The financial institutions that have settled in the area include Agricultural Bank of China, China Construction Bank, Bank of China, ICBC, Industrial Bank, and Quanzhou Bank. Ding Wei, deputy governor of China Merchants Bank, mentioned that he will study the financial needs of Shuitou in depth, especially in supply chain finance.

Shi Jie, general manager of the credit evaluation department of Minsheng Bank, said that supply chain finance refers only to inventory finance, while Minsheng’s stone industry finance is the development of financial services for the whole industry chain.

Minsheng Bank's overall development goal for the stone industry chain is to form a financial barrier to the stone industry through the deep integration of finance and industry. To achieve this goal, we must control the strategic commanding heights of the stone industry chain, cover the target customer base, integrate the industry chain services, and effectively control risks.

Minsheng Bank's research shows that in the four major links of the stone industry chain, mining, block trade, raw material processing, and finished product sales, industry profits and capital are concentrated in both mines and sales, but traditional bank loan services are concentrated in processing. The enterprises have a small amount of input at both ends of the upstream and downstream, and there is a wide space for professional financial development.

According to the services provided by each link of the stone industry chain, Minsheng Bank initially established seven business models: namely, comprehensive service model for mine development, comprehensive service model for market construction, financing model for whole industry chain transactions, comprehensive service model for small and micro businesses, and multi-dimensional stone business. Matching mode, intangible business circle integration mode and e-commerce platform.

Qiu Shangqi, president of Minsheng Bank Quanzhou Branch, said that the trend of “dumbbellization” of capital and profit in the stone industry chain is obvious. The current focus of people's livelihood is to seize the source of the mine, such as providing financial support for the mine owner to purchase the mine inside and outside, so as to obtain the block. The price advantage of purchasing; intervening in the investment promotion of key mining areas to obtain investment opportunities in the mine. The goal of Quanzhou Branch is to occupy more than 50% of the exclusive mining of unique stone varieties.

Due to the huge investment risk of mines, the risk rate is as high as 85%. Therefore, people's livelihood tends to adopt mine development funds and mineral trusts in the control of mine resources.

“The mine development fund is for investors with industry investment experience. For example, private banking customers are equivalent to LP, and the fund is at their own risk, but our supervision will adopt the risk approval criteria for loans.” Shi Jie told reporters.

In addition to source control, Minsheng Bank's other focus is on sales-side control, which will launch a professional stone market in cities across the country, while providing financial services to small and micro-merchants in the market.

Matching commercial orders

“The most important thing is the commercial order matching service.” Wang Boyao, chairman of the local stone enterprise of Shuitou, told reporters.

The so-called commercial order matching model is that Minsheng Bank uses the information resources advantages of outlets to conduct business matching, does not occupy the Bank's capital and loans, and obtains compliant intermediate business income.

This year, Quanzhou Branch has launched the first commercial matching order service. The construction of a five-star hotel in a certain area requires a batch of stone. Minsheng Bank uses the stone information of the Shuitou Branch to provide a quotation. The quotation is lower than the local market price and the inquiry of Party A. Minsheng Bank will place the order business to the local manufacturer of Shuitou, and The dispatch team will track the order business.

“The factory can get 90 million sales from this order, and Minsheng Bank will withdraw 10% commission from it. If the order is 20 billion yuan a year, it will bring us at least 2 billion yuan in intermediate income. We are doing it in the middle. The first step is to help Party A find a reasonable price for Party B and save the gray interest link for building materials procurement. Second, help the factory get the order and check the qualification of Party A to ensure that the factory can get the project payment at the end. Survival lifeline is an order, and it is normal for us to withdraw commissions from it." Qiu Shangqi said.

At present, Quanzhou Branch has issued a collaborative invitation to all branches of Minsheng, and Quanzhou Branch provides information on customers who have stone purchase needs. Minsheng Bank's 10%-15% commission from the order sales may significantly increase the income of Minsheng Bank's intermediary business. This profit is divided by Quanzhou Branch and the information-providing network, which also mobilizes other branches to participate. Enthusiasm.

Huang Tianyong, general manager of the order financing center of Minsheng Branch of Minsheng Bank, told reporters that Minsheng Bank did not bear the risks involved in making the order matching business. The bank did to reduce the risks that may arise in the transaction process for both parties. After the completion of the order, Minsheng Bank will also provide a series of follow-up services such as order financing.

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