A finance company is a financial institution approved by China Banking Regulatory Commission and established by a large enterprise group to provide financial services for the group. The acceptability of a commercial bill is generally determined by the qualifications of the acceptor. The qualification of financial companies is much higher than that of ordinary enterprises, so it is not appropriate to classify accepted bills as e-commerce acceptance.
The funds for developing materials come from and are also used by the group company, which is highly dependent on the group company. There are two main sources of funds for finance companies: one is the capital invested by the group company and its members, and the other is the deposits of the member companies of the group company in the finance company.
The funds of finance companies are mainly used to provide financial support for group member enterprises, and a small amount is used for securities investment unrelated to the leading industries of the group. Because the source and application of funds of financial companies are limited to group companies, financial companies are highly dependent on group companies, and their development is related to the development of their group companies.
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