(Yicai Global) Sept. 27 -- The Industrial and Commercial Bank of China Ltd. [SHA:601398] (ICBC) and six central state-owned industrial enterprises signed a cooperation framework agreement in Beijing on Sept. 27 to formally establish a supply chain finance alliance for central SOEs.

The firms include COFCO Corp., CRRC Corp. Ltd. [SHA:601766], China Baowu Steel Group Corp. Ltd., Power Construction Corp. of China Ltd. [SHA:601669], State Grid Corp. of China and China National Cotton Exchange.

Alliance members will look to integrate customers, markets, channels, data and technology resources to inject new energy into the upstream and downstream development of the supply chain across small- and micro-enterprises.

The group will also actively explore opportunities related to Big Data, the Internet of Things, blockchain and other innovative applications of financial technology to develop a smart finance industrial chain.

The founding members boast extensive experience in the field of supply chain finance. For instance, previous cooperation between COFCO and ICBC yielded nearly CNY10 billion (USD1.52 billion) in financial support for upstream and downstream customers, while Beijing Cotton Exchange and ICBC set up a transaction processing model integrating smart warehouse receipts and remote-monitoring. The solution provided around CNY1 billion in financial support for customers on the platform.

ICBC has established a supply chain partnership with more than 3,200 core customers to date, covering high-end equipment manufacturing, modern agriculture, clean energy, information and communication and other key national industries.

The bank provides more than CNY800 billion in financing for more than 11,000 upstream and downstream customers. It will allow access to extensive customer resources while providing financing services for industrial chain customers of alliance members.