I. Description
Commodity financing refers to the structured short-term financing business that the Bank grants to the borrower on the condition that the Bank entrusts a third-party logistics monitoring enterprise to supervise reserves, inventories or goods receivable from a transaction that the borrower legally possesses, and takes value of the commodity as the primary source of repayment.

II. Product Functions
The Bank provides financing on the base of commodity credit, helping break the bottleneck that relies too much on the customer's comprehensive credit standing for handling financing business. The commodities in the service cover a wide range and plenty of categories as well, and are applicable to a broad span of customer groups. Commodity ownership will not be changed during the process, and the enterprises' normal operations will not be affected. Both static and dynamic processing modes are provided to facilitate the enterprises' stocking or sales.

III. Qualifications
i. Approved/registered in accordance with the law, having obtained corporate business license or other valid documents that certify the company’s business legality and business scope;
ii. Having opened a basic deposit account or a general deposit account with the Bank;
iii. Normal production operation, smooth purchase/sales channels, free of goods default or other bad records; goods pledged are main raw material or core goods;
iv. Enjoying lawful and complete ownership over the goods which doesn't involve any dispute and has fine quality; possessing a active transaction market, open and transparent price; and
v. Meeting other requirements of the Bank.

IV. Handling Procedures
i. The applicant submits a business application, as well as materials such as business license, certificate of goods ownership etc. to the Bank;
ii. The Bank investigates information of the applicant and goods, and assess the pledge value; and the applicant buys insurance for the goods pledged;
iii. The applicant signs business agreements with the Bank and the logistics monitoring enterprises;
iv. The Bank informs the logistics monitoring enterprise to handle collateral warehousing formalities, and gets receipt from the latter;
v. The Bank disburses financing to the applicant;
vi. The applicant repays the loan principal and interest at maturity of the financing, then the Bank informs the logistics enterprise to release pledge. After that, the borrower takes delivery.

Note: Information on the page is for reference only. Please refer to announcements and regulations of local outlets for specific business.