A Study On Commodity Structured Trade Finance For Chinese Commercial Banks

With the globalization of economy and the development of commodity trade, traditional trade finance faces constraints in meeting the customers' requirements for one-stop management of information, fund and logistics. In this case, more and more international commercial banks have provided commodity structured trade finance business for their customers.Nowadays China takes the lead in the world commodity production and consumption. On the one hand, the development of commodity trade not only provides enormous opportunities for Chinese commercial banks but also poses challenges to their traditional international business. On the other hand, while the small to medium-sized enterprises ("SME") contribute greatly to China's economy, they find themselves difficult in obtaining finance from the banks due to lack of traditional security or guarantee. Commodity structured trade finance has such characteristics of self-liquidated and fully-structured, which allows for more opportunities for China to upgrade its trade structure and the Chinese commercial banks to sharpen their competitiveness, and quenches SMEs' thirst for funding as well.On this thesis, the author starts with the background of the research, defines relevant concepts and then relays the whole dissertation. After the analysis of the importance of commodity structured trade finance, the author not only introduces several typical products of structured trade finance but also analyzes their risks and proposes some preventive measures. In the end, under the current situation of commodity structured trade finance business of Chinese commercial banks, the author makes some proposals to tackle the problems in commodity structured trade finance.