The Wild Growth of Trillion-Dollar Quasi-Notes (AI Translation)
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文｜财新周刊 张宇哲 朱亮韬
By Zhang Yuzhe and Zhu Liangtao, Caixin Weekly
近期，头部汽车企业的供应链应付账款引发外界关注。以新能源车企龙头比亚迪（002594.SZ）为例，财报显示的应付账款规模从2019年底的225.2亿元，快速攀升至2024年三季度末的2375.19亿元，涨幅近10倍，同期的营业收入涨幅则为近3倍。
Recently, the accounts payable of supply chains for leading automobile companies have attracted outside attention. For instance, the accounts payable of the leading new energy car company BYD (002594.SZ) have seen a rapid increase from 22.52 billion yuan at the end of 2019 to 237.519 billion yuan by the end of the third quarter of 2024, representing nearly a tenfold increase. During the same period, its revenue grew by nearly threefold.
比亚迪自2018年11月开始，作为链主企业，向供应商签发应收账款电子凭证“迪链”作为结算方式。在上游供应商广东华庄科技股份有限公司（下称“华庄科技”）看来，“迪链”是由比亚迪作为出票人、承兑人，基于其自身商业信用出具的可在一定范围内流通的电子信用凭证，并非传统的商业票据，但具有商业票据的特征。
Since November 2018, BYD has been issuing electronic accounts receivable certificates known as "Di Chain" as a method of settlement for its suppliers, acting as the anchor company. To upstream supplier Guangdong Huazhuang Technology Co., Ltd. (hereinafter referred to as "Huazhuang Technology"), the "Di Chain" is an electronic credit certificate issued and accepted by BYD based on its own commercial credit and is capable of circulating within a certain scope. While not a traditional commercial bill, it bears the characteristics of such commercial instruments.
目前，类似“迪链”这样的应收账款电子凭证已有很多。过去几年，围绕央企、地方国企、大型民企等核心企业作为链主搭建的供应链金融平台如雨后春笋，主打产品就是给其供应商（多为中小企业）签发的应收账款电子凭证，名字多叫“X信”“X单”“X链”等，市场统称“信单”。
Currently, there are numerous electronic accounts receivable certificates similar to “Dilian.” In recent years, supply chain finance platforms built around central state-owned enterprises, local state-owned enterprises, and large private enterprises as core entities have proliferated. Their main product is the issuance of electronic accounts receivable certificates to their suppliers, most of which are small and medium-sized enterprises. These products often carry names like “X Letter,” “X Note,” or “X Chain,” collectively referred to in the market as “Letter Notes.”
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- The accounts payable of BYD drastically increased by nearly ten times from 2019 to 2024, while its revenue tripled during the same period. It uses electronic certificates like the "Di Chain" for supplier settlements.
- Over 500 supply chain finance platforms exist, with an annual issuance scale of 4-5 trillion yuan. A regulatory draft aims to oversee these platforms, addressing issues like lack of data and regulatory blind spots.
- The "Notice" mandates commercial banks to oversee supply chain finance risks and advocates a transition to a "de-core" financing model, allowing SMEs better access to credit loans.
[para. 1] The accounts payable for leading automobile companies, like BYD, a new energy car company, have surged significantly, with BYD's accounts growing from 22.52 billion yuan at the end of 2019 to 237.519 billion yuan by the third quarter of 2024. This increase is approximately tenfold, while the company's revenue only grew threefold during the same period. BYD has been using electronic accounts receivable certificates, known as "Di Chain," since November 2018 as a settlement method for its suppliers.
[para. 2] Many electronic accounts receivable certificates similar to "Di Chain," often called "Letter Notes," have emerged, driven by core enterprises acting as anchors in supply chains. These certificates can circulate similarly to traditional commercial instruments but are not subject to the Bill Law. Although innovative, these systems have also led to credit defaults and other issues due to a lack of consistent data and standardization in supply chain finance.
[para. 3] According to Yunqu Shuke Industry Digital Asset Research Institute, over 500 supply chain information service platforms exist, with an annual issuance scale between 4 trillion and 5 trillion yuan. The Asia-Pacific Future Research Institute estimates about 350 platforms and insiders mention roughly 1,000 platforms, with the "letter order" market scale ranging between 5 trillion and 10 trillion yuan.
[para. 4] Regulatory bodies in China, including the People's Bank of China, have recognized the need for oversight in supply chain finance due to its growth and outlined regulations in a draft notice titled “Notice on Regulating Supply Chain Finance Business.” This draft, open for public comment, acknowledges the positive role of electronic certificates but also highlights issues such as credit overexpansion and lack of regulation.
[para. 5] These regulations propose defining platforms as “supply chain information service organizations” and suggest establishing risk monitoring systems. The People's Bank of China and the National Financial Supervision and Administration Bureau will supervise this sector with guidance from the Internet Finance Association. Self-regulatory rules are being developed, outlining responsibilities for businesses and banks involved in this ecosystem.
[para. 6] Distinctions between platform types reveal variations in supply chain finance: core enterprise-run systems, bank-established platforms focused on corporate clients, and third-party fintech solutions. These platforms are redefined as "information service organizations," restricted from financial activities without legal authorization. Industry adjustments and exits are expected following new regulations.
[para. 7] The draft notice specifies commercial banks' requirements, such as comprehensive debt monitoring mechanisms and independent loan procedures, to manage supply chain financial risks effectively. It encourages “de-core” models where credit is based on data, not solely on core enterprises' credit.
[para. 8] Concerns about platform liquidity, the cost of financing for SMEs, and unsustainable practices by core enterprises have been identified. Suppliers are pressured into accepting loans and payment methods that benefit core enterprises more than smaller businesses. A focus on protecting SME rights and improving supply chain practices is evident in the notice.
[para. 9] Self-regulation management, led by organizations like the Internet Finance Association and Shanghai Commercial Paper Exchange, is emphasized. However, implementation challenges exist regarding industry compliance and comprehensive data reporting for these electronic certificates.
This summary captures the essence and key findings from the recent analysis of the burgeoning supply chain finance sector in China, focusing on electronic accounts receivable certificates' rapid growth, potential regulatory framework, and impact on SMEs.
- BYD
比亚迪 - BYD, a leading new energy vehicle company, has seen its accounts payable surge from 22.52 billion yuan at the end of 2019 to 237.519 billion yuan by Q3 2024, while its revenue increased nearly threefold. As a supply chain leader, BYD uses the "Dichain," an electronic receivable certificate, for supplier settlements. Concerns arise about prolonged payment cycles and the company's impact on small and medium suppliers' financing.
- Huazhuang Technology
华庄科技 - Huazhuang Technology, a supplier for BYD, explained that BYD uses a settlement method involving a 30 to 60-day monthly credit policy along with 6 to 8-month "Di Chain" vouchers. This results in Huazhuang Technology experiencing longer payment cycles.
- China Enterprise Cloud Chain
中企云链 - China Enterprise Cloud Chain, a pioneering company in receivables electronic vouchers, has revealed over 50 million small and medium suppliers on its platform. As of early 2025, it has accumulated verified receivables worth 1.8 trillion yuan, with banks providing 1.3 trillion yuan in receivables financing. It was among the first third-party platforms to connect with the Shanghai Commercial Paper Exchange in 2020 and plans to integrate its "Cloud Credit" into the exchange by 2025.
- Tonghui Digital Technology
通汇数科 - Tonghui Digital Technology is mentioned in the article as noting that prior to regulation, there were no requirements for the duration of electronic debt certificates. Some platforms issued electronic debt certificates with terms up to three years, effectively extending the payment period. This suggests that Tonghui Digital Technology is aware of industry practices related to the duration of these financial instruments before regulatory measures were introduced.
- TCL
TCL - TCL operates a supply chain finance platform called "Jian Dan Hui," which is among platforms built by major enterprises like central enterprises, local state-owned enterprises, and large private enterprises. These platforms aim to support suppliers, particularly small and medium-sized enterprises, by providing electronic receivables. The platforms handle tasks such as issuance, acceptance, transfer, pledge financing of receivables, but they must adhere to new regulations set forth by Chinese authorities.
- Since November 2018：
- BYD started issuing electronic accounts receivable certificates known as 'Di Chain'.
- End of 2019：
- BYD's accounts payable were 22.52 billion yuan.
- May 2023：
- BYD disclosed that its 'Di Chain' had opened accounts exceeding 400 billion yuan in total.
- By the end of the third quarter of 2024：
- BYD's accounts payable had increased to 237.519 billion yuan.
- End of 2024：
- COFCO Capital (Tianjin) Commercial Factoring Co., Ltd. was canceled.
- Early February 2025：
- Chairman Liu Jiang revealed during a media interview that the platform hosted over 500,000 suppliers with certified rights worth 1.8 trillion yuan.
- February 6, 2025：
- Six Chinese regulatory bodies released a draft document aiming to regulate supply chain finance business.
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