China's steel trade industry credit reconstruction is urgent

Since last year, the negative news of the steel trade industry has continued. An industry insider who has been in the industry for several decades told the reporter of China Metallurgical News that it is now embarrassing to say that he is doing business in the steel trade. In the face of ****, steel traders and even the entire steel trade industry need to reflect on: How is the current confrontation of the government?

Recalling the turmoil of steel traders' credit, the financing model of bank movable mortgage pledges, joint insurance lending, and the triple financing of manufacturers' silver are seen as sources of risk. In fact, these financing models are reasonable from the design of the program to the specific operating procedures. They are, after all, an innovation in the logistics and warehousing financing and have solved the problem of financing difficulties for small and medium-sized steel trading companies. For example, the joint guarantee loan financing model is guaranteed by the credit of steel traders, which is guaranteed by the steel trade companies, and the third party guarantee company approved by the bank guarantees the financing of steel trade companies. In the specific operational flow, this model requires that steel trading companies must acquire assets as shares, become shareholders of third-party guarantee companies recognized by the bank to have ** qualifications, and must have stocks that are legally owned by third parties or owned by third parties when ** is required. Delivery of the bank as collateral, and the delivery of security deposits; Five steel-equipment companies with equivalent assets form a joint security team to issue ** credit to the bank, and each assumes joint guarantee responsibility for the ** members of the UNPROFOR team; The board of supervisors, composed of major shareholders, carried out collective audits. The steel market (the largest shareholder of the guarantee company) and the guarantee company's board of directors jointly sponsored the financing of steel trading companies, and was finally approved by the bank for lending. This type of financing model, through cargo mortgages, mutual guarantees, joint guarantees, guarantee companies, steel markets, and bank-level fortifications, should be said that the “fence” has been tightly wounded. Even if individual steel trade companies have repayment risks, they can Through mutual protection, joint security to solve the problem smoothly. However, this series of well-designed designs will not be able to stop the concentration of risks in the absence of the social credit system in the steel trade industry.

According to reports, the key to the systematic outbreak of risk is that some steel trade companies are seriously lacking in credit. Specifically, individual steel traders have bypassed creditors (banks) and third-party regulatory companies, colluded with storage companies, and issued The physical warehouse receipts or warehouse receipts were fraudulently loaned to the bank, or forged a registration form for storage. Without the consent of the bank, the pledged property was extracted without authorization and the mortgage of the bank was defeated. There are also some borrowers who use the same pledge to borrow money from a number of banks, and “more than one woman gets married”. However, warehousing companies have turned a blind eye to more business. This chaos gradually spread under certain conditions, and evolved from individual phenomena to the absence of a social credit system for the entire steel trade industry. In addition, under the general environment of loose liquidity in the past few years, the steel trade industry has experienced a “investment fever”, and large and small steel trading companies have been unable to stop the temptation to “get rich overnight” and have turned to the capital market. However, with the slowdown in steel demand and the tightening of banks’ monetary resources, steel traders have become tightly capitalized and have become a “fuse” for systematic risks.

Therefore, if there is no letter as a guarantee, even if the design of the ** model is reasonable and the operation process is tight, the risk of ** is still unavoidable. In the face of the current credit dilemma, it is urgent for Steel Trade to rebuild its social credit system. Since the reconstruction of the social credit system is a systematic project, people in the industry believe that the following issues are urgently needed to be resolved:

First, the sharing and publicity of credit information is achieved so that both trustworthy and untrustworthy people can make appearances in a timely manner. This should start from solving problems such as poor information flow and information asymmetry, involving government, industry, taxation, banking, customs, and judicial departments. Relevant departments must establish a unified database of corporate credit information as soon as possible, and collect a large number of scattered and dynamic daily supervision information through information collection systems such as aggregation, statistics, and management to share with enterprises and establish a corporate integrity information database system.

Second, establish a mechanism for corporate trustworthy incentives and dishonest punishment. At present, fraudulent acts such as false warehouse receipts, falsification of warehousing voucher registration vouchers, and repeated pledges, as well as contract breaches, debt evasion, and other non-compliance phenomena occur frequently, which is unrelated to the fact that the cost of dishonesty is too low. It is necessary to establish a fair and competitive market environment, and to establish a clear system of rewards and punishments, so as to make it impossible for the losers to move forward, and to keep the trustworthy people open.

Third, improve the business ethical quality of business operators and actively promote the establishment of a corporate credit system. Only in the entire industry to establish an honest and trustworthy, law-abiding business climate, protect credit management, resist and severely crack down on the violation of the principle of good faith and do not act in accordance with market competition rules, the industry's overall credit level will increase. Only by saying that sincerity has become the conscious action of most steel trade enterprises, can the steel trade market truly follow the norm, orderly and healthy development track.