China Everbright Bank, China Industrial Bank, Citic Industrial Bank, China Construction Bank and Shanghai Pudong Development Bank have all recently received factoring permits from the People's Bank of China. They join Bank of Communications and Bank of China, which paved the way in the early 1990s. Figures from Factors Chain International, an Amsterdam-based global umbrella organisation for factoring companies, show that the value of China-based factoring grew almost six-fold in 2001 over the previous year to reach a value of m1.24bn.As recently as 1996, the equivalent figure was a mere m12m.
Hong Kong-based factoring in 2001 grew 12.5 per cent to reach m2.7bn, while Taiwanbased factoring grew 41 per cent to hit m5.2bn. In terms of regional growth in factoring, mainland China was four years behind Hong Kong and only two-to-three years behind Taiwan. It should be pointed out, however, that these three economies combined still only accounted for just over 1 per cent of global factoring turnover.