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Super & short-term commercial paper
1. Basic concept
A SCP is defined as a bond with a term of 270 days (9 months) or shorter that is issued in the inter-bank bond market by a non-financial corporation that has enterprise capacity and a high credit rating, usually AAA.

2. Functions
The term of an SCP ranges from seven days to nine months. This means the bond’s issue size is free from the restriction of 40 percent net asset value. This helps enrich the market structures of interest rates and risks and liquidity, and generates a market yield curve that covers short-, mid- and long-term financial products.

3. Advantages
More flexible than short-term bonds, and more competitive and market-oriented than bank liquidity loans, Super & short-term commercial paper is designed for enterprises to overcome a shortage of short-term working funds and improve liquidity management. They are better suited for large enterprise groups that implement financial management. 

4. Qualified issuers
Currently, the qualified issuers of super & short-term commercial paper include AAA central enterprises and their core subsidiaries with assets and revenues accounting for over half of their respective groups’ total size.
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.