We will continue to try the system for the country. While making full use of the policies of the Free Trade Zone, Tianjin will focus on new scenarios and new business formats, continue to deepen financial system innovation and product business innovation, enhance the international competitiveness of market players, and contribute more Tianjin experience to financial services for the real economy.
Recently, Tianjin released 11 financial innovation cases of this year's pilot free trade zone, focusing on cross-border trade investment and financing facilitation, commercial factoring and other aspects. Since 2016, Tianjin Free Trade Zone has formed 125 financial innovation cases, which have been replicated and promoted nationwide.
Xingshang Electronics is a cross-border e-commerce enterprise, mainly selling Chinese electronics, household appliances and other products to more than 30 countries and regions in the world, such as the United States and the United Kingdom. Looking at the financial policy of Tianjin Free Trade Zone, the enterprise plans to establish a new company in Tianjin. In the past, after purchasing in China, Star Business Electronics needed to be stored in the warehouse of foreign e-commerce enterprises, and then distributed to overseas consumers. Among them, the rent of warehouse accounts for nearly 40% of the total cost. Self built "overseas warehouse" overseas has become the key for enterprises to further reduce costs. However, enterprises are light assets and it is difficult to obtain financing from banks.
As the business of Star Mart Electronics in Europe is growing, the warehouse rented in Poland is no longer enough. The enterprise plans to build an overseas warehouse of 25000 square meters in Poland this year, focusing on Germany, Denmark and other countries. Star Commerce Electronic plans to apply for loans from local banks. To obtain loans, overseas warehouses need to meet the construction standards of the European Union. The Municipal Finance Bureau, together with China Export&Credit Insurance Corporation, provides full chain services such as design, construction, operation and maintenance for the qualified Tianjin Architectural Design Institute connected by Star Business Electronics. The two sides hit it off.
With the pilot policy of the Free Trade Zone, Tianjin also encourages financial institutions to provide customized services for enterprises to finance overseas and provide guarantee assistance. As a national high-tech enterprise, Xingshang Electronics has dozens of core technologies in information processing. China Export&Credit Insurance Corporation Tianjin Branch provides door-to-door services to comprehensively evaluate the enterprise's capital flow, sales big data and intellectual property rights, and serves as the core indicator of credit enhancement. In the end, Xingshang Electronics has won support from a number of overseas financial institutions, totaling 30 million euros. Recently, the enterprise invested 50 million yuan to establish a branch in Tianjin.
Including the support of China Export&Credit Insurance Corporation for the construction of overseas warehouses by Star Commerce Electronics, the Municipal Finance Bureau is also analyzing and sorting out these 125 financial innovation cases, linking with the Tianjin Branch of the People's Bank of China and the pilot free trade zones to carry out enterprise docking activities, organize banking institutions, provide customized services, and expand the scope of application of financial innovation. Encourage and support financial institutions, constantly innovate policies, and serve the development of enterprises. Tianjin Branch of Shanghai Pudong Development Bank used the pilot policy of cross-border financing facilitation to open an account for foreign debt and carry out cross-border capital business for enterprises, and successfully borrowed 3 million dollars of foreign debt; Tianjin Branch of China Construction Bank, Tianjin Branch of Agricultural Bank of China and other institutions have introduced about 16 billion yuan of overseas low-cost funds through the business linkage of domestic and foreign branches of the system to strongly support the development of regional real economy.