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Introduction

The strategic significance of the Belt and Road Initiative, which the Chinese government proposed three years ago, lies in the prospects it promised for tapping the participatory countries’ potential of economic growth through their interconnectivity, including cross-border investment. But the question still remains not fully answered as to how the bright prospects can come true.

As a new player in the international credit rating market, Dagong Global Credit Rating Group now comes to tackle this task by injecting the wisdom and advantage it accumulated from its service in the past 20 years into the building of a new channel for cross-border capital flow for the implementation of the Belt and Road Initiative. What it has built is SilkRoadITFin.com, an Internet-based financial information/service platform.

Safeguarded by a risk control mechanism under professional monitoring and guidance, SilkRoadITFin.com offers an open, participatory, efficient and secure online market environment with the following features:

One platform of Internet finance intended to serve all Belt-and-Road countries.
Two main functions — credit information and its applications.
Four main types of products, namely information about the Belt and Road, whole-process credit management in investment, digitalized credit rating, and credit products. 

(Click the logo below to visit the platform) 

Functions

SilkRoadITFin.com has two major functions: Credit information and credit information-based applications.
 

1.Credit Information

SilkRoadITFin.com publishes all information, on both macro and micro levels, needed for cross-border investment, encompassing policies on the state, industry and enterprise levels, cultural conditions, supply and demand in various goods and services, credit rating and credit management. The presentation of such information contains rich info-graphics and illustrations. Its reliability is ensured by Dagong’s analytical solution. It is bilingual in Chinese and English. Its powerful search capability generates good user experience. It is a safe, efficient new carrier of information and facilitator of cross-border capital flow.
 

2.Credit Information-Based Applications

SilkRoadITFin.com is a platform with applications for real-time transactions for investment and fund-raising. It is a leader in Internet finance by making the debtor’s credit risk transparent in a prompt, accurate, quantified, and dynamic way. Creditors and debtors can build their own capital portfolios by utilizing authoritative crediting rating by an independent third-party. Credit rating leads to the setting of the price for capital transactions. A series of digital applications are designed to lay bare the debtor’s credit risk can provide the investors with a wider range of choices in a more open and efficient environment than the offline market.

Products

SilkRoadITFin.com provides users with four categories of products, including the Belt and Road information products, credit management, credit rating and loan products, thus provides credit analyses instruments for creditors.

1. Products Overview

  (1) Information Products Regarding the Belt and Road
 

 

  (2) Credit Management


  (3) Credit Rating


  (4) Loan Products

 


2. The Core Product

As a new type Internet platform for direct fund-raising, SilkRoadITFin.com meets the needs of the real economy for efficient financial services. Its core products are loan products.
 

  (1) Product Overview

Loan products are direct credit-related information products that Dagong Data offer to creditors (institutional and individual investors) and debtors (fund-raising enterprises) – to enable them to collect credit information, to disclose information, to do credit-rating, to exchange information, and to make deals between each other.


  (2) Trading Rules
 


  (3) Examples for Investment

Returns from a successful investment may differentiate according to different payment methods, terms and interest rates.

Example 1: Average capital plus interest, 12 months, 8% annual interest rate

Mr Wang has invested in a mortgage-backed credit increasing loan program. The program’s total amount is 500,000 yuan, with an investment period of 12 months, and a repayment method of     average capital plus interest. The expected annualized rate of returns is 8%. In this program, Mr Wang has invested 10,000 yuan, so his earnings estimates are as follows:
 


Example 2: One-off payment of capital and interest, 3 months, 10% annual interest rate

Mr Zhang has invested in a pure credit loan program. The program’s total amount is 300,000 yuan, with an investment period lasting 3 months and a repayment method of one-time debt           service. The expected annualized rate of returns is 10%. In this program, Mr Zhang has invested 10,000 yuan, so his earnings estimates are as follows:



Example 3: Monthly interest payments and repay principle at maturity, 6 months, 9% annual interest rate

Mr Li has invested in a mortgage-backed loan program. The program’s total amount is 600,000 yuan, with an investment period of 6 months, and a repayment method of monthly interest   payments and repayment of principle at maturity. Its expected annualized rate of returns is 9%. In this program, Mr Li has invested 10,000 yuan, so his earnings estimates are as follows:


 

 

Feature


To build transparent credit relations online, it is necessary to control the risk arising from the asymmetry in information, building a credit information service and an open, participatory, efficient and secure environment for Internet finance and professional credit rating, hence credit management through the whole process of capital input, usage, appreciation, and return.
 

1. One Database, Three Platforms
 




 



Supporting the working of the other platforms, the credit information database is an aggregation of data, processed according to uniform standards, about enterprises, subjects of management,   partners of transaction, and internal human resources. It is where credit information is converted to statistics, processed for analysis, and used for exchange and sharing as managerial   resources.

Credit rating analysis platform is the carrier of realizing digitalized credit rating technology, which can optimize rating models and algorithm continuously. It has achieved digital, intelligent, and   automation of credit rating based on big data.

Credit rating-based management platform is an information management system to implement project management, operation procedure management and process monitoring by the   management pattern which combines rating production line and project management. Dagong Data has introduced an advanced and exquisite quality management system. The production quality and efficiency of rating production will be guaranteed through the integration design of the responsibility, process, standard, verification, audit, risk control and examination of every working procedure.

Credit information service platform, which is supported by Internet technology, is an Internet investment and financing platform for market participants to manipulate directly. It contains the public information of debtors, public supervision of creditors, professional rating regulation and blacklisting, realizing efficient and safe direct investment and financing activities of real economy and capital.


2. Interest Rate Setting Mechanism

On the platform of SilkRoadITFin.com, the interest rate is to be set according to the overall supply and demand in the capital market and the debtor’s credit grade. The higher credit grade and credit records the debtor has, the lower the interest will be, and vice versa.

Such interest rate setting mechanism on SilkRoadITFin.com can guide investment funds to flow high-quality projects. A debtor with a higher credit risk will have to pay a higher cost in fund- raising. While for a creditor, although a project with lower credit risk may generate a lower interest income, his whole investment is under the better protection. Such mechanism not only takes into consideration a debtor’s risk-taking capability, but also matches a creditor’s risk and return, and generates a dynamic balance between both. 

3.  Credit Financing
 
SilkRoadITFin.com relies entirely on all-round information available for determining the debtor’s solvency, and not necessarily requiring a collateral, pledge or guarantee. Credit record is of   critical importance for the debtor to raise funds on a continuous basis. 

4.  Credit Management

SilkRoadITFin.com is aimed at building for Internet finance a secure credit environment, with a high reputation in the market. Doing so, it applies credit management on two levels: Reviewing on all participants’ credit standing and tracking down their credit behavior, and monitoring of the debtor’s use of proceeds through the investment process and its debt repayment records.
 
5. Security

SilkRoadITFin.com helps creditors seek returns of investment from investing in the real economy. All funds involved are under the administration of third-party banks. It meets all the legal and compliance requirements. It features a well-designed risk control system.

6. International Applicability

SilkRoadITFin.com adopts Chinese and English as its official languages. It provides information about all the countries covered by the Belt and Road Initiative, regarding politics, humanities, economy and credit rating. It allows for all participants in the real economy to conduct investment/fund-raising. It can serve as an innovative common platform for the developing countries’ to build their bond markets. 

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Operation

SilkRoadITFin.com is operated by Dagong Data.
 

1.Operation Process Introduction
 

  (1) Operation Process for Auditing Institutions
 

Auditing institutions can log in to the platform with the user name and password provided by the platform, select the enterprise to be audited and perform specific auditing to the enterprise’s operation data and financial data following auditing standards and regulations. Auditing institutions can review the audit working paper in the digital auditing system, complete the credit information report and upload the audit working paper, credit information report and auditing report to the platform through the digital auditing system.
 

  (2) Operation Process for Institutional Creditors
 

After signing a service agreement with the platform, institutional creditors can log in to the platform with the user name and password provided by the platform, search and read full-dimension credit information which is illustrated, digital, visualized, professional and bilingual, then select financing projects according to the risk preference and investment strategy of their own. After the investment is completed, institutional creditors can carry out full-course monitoring of fund flows and credit asset management.
 

  (3) Operation Process for Individual Creditors
 

After logging in to the platform, individual creditors will go through real-name authentication, open an individual bank account for fund deposit and bind the bank card. Before investment, individual creditors will fill in the risk preference assessment questionnaire and select financing projects according to risk preference and risk tolerance of their own. After the investment is completed, individual creditors can carry out full-course monitoring of fund flows and credit asset management.

 

  (4) Operation Process for Auditing Institutions
 

Auditing institutions can log in to the platform with the user name and password provided by the platform, select the enterprise to be audited and perform specific auditing to the enterprise’s operation data and financial data following auditing standards and regulations. Auditing institutions can review the audit working paper in the digital auditing system, complete the credit information report and upload the audit working paper, credit information report and auditing report to the platform through the digital auditing system.
 

  (5) Digital Rating Process




2. Illustration of Operation Process

  (1) Illustration of Operation Process for Audit Institutions







 

  (2) Illustration of Operation Process for Institutional Creditors
 



 


 

  (3) IIllustration of Operation Process for Individual Creditors
 






 

  (4) Illustration of Operation Process for Debtors