Shanghai Commercial Paper Exchange Corporation Ltd. (SHCPE), established on December 8, 2016, is a nationally approved bill trading platform authorized by the People’s Bank of China and ed with policies and plans formulated by the State Council of the People’s Republic of China.

As a significant infrastructure in China’s financial market, SHCPE provides comprehensive services such as bill quotation and trading, registration and custody, clearing and settlement, and information services. It fulfills policy functions related to rediscount operations and other monetary policies under the purview of the Central Bank. SHCPE operates as an integrated center, encompassing registration and custody, trading, innovation and development, risk prevention and control, and data and information research in the field of bills.

The establishment and development of SHCPE significantly enhance the security, transparency, and trading efficiency of the bill market. It promotes market dynamism and mitigates risks associated with bill transactions. Moreover, SHCPE contributes to macroeconomic regulation by the central bank, improves the transmission of monetary policies, and enhances the financial industry’s capacity to serve the real economy. In 2018, SHCPE achieved the successful integration of paper and electronic bills in trading. It established a unified, secure, and efficient electronic bill trading platform. During the same period, the bill trading system recorded a total of 7.5512 million bills traded, with a combined value of RMB 41.75 trillion in paper and electronic bill transactions. SHCPE accepted 20.7696 million bills, amounting to RMB 18.27 trillion, and discounted 4.6739 million bills, totaling RMB 9.94 trillion.

Main business:

I. Information Registration: SHCPE provides services for information registration, including accepting information registration, registering pledge and guarantee details for undiscounted bills, and registering information for discounting, guaranteed credit enhancement, depository transfer, payment confirmation, payment suspension, and settlement.

II. Escrow Registration: SHCPE maintains records of the balance and any changes in bills held through bill escrow accounts.

III. Bill Trading: SHCPE facilitates various types of bill trading, including rediscounting, pledge repos, and buyout repos.

IV. Pledge and Guarantee: SHCPE supports pledge-related transactions, such as pledge application and confirmation, as well as pledge cancellation application and confirmation. It also handles guarantee-related transactions, including guarantee application and confirmation.

V. Bill Maturity: SHCPE manages the processes of prompt payment and bill recovery upon maturity.

VI. Clearing & Settlement: SHCPE offers clearing and settlement services for bills and provides fund account services for its members. Member institutions utilize either the clearing account of the People’s Bank of China or SHCPE’s own fund account for bill settlement and fund collection and payment purposes.