In the first half of 2009, bill financing, i.e., financing based on commercial drafts, recorded 12.8 trillion yuan, which amounts to 57.7 percent of the stock exchange turnover, or 162 percent of the turnover on the interbank borrowing market during the same period. Despite the rapid development and growing importance, commercial drafts face a number of problems.
These include irregularities in draft acceptance and discount, dishonor by nonpayments, fake drafts, and unregulated innovation. Other aspects of the weaknesses include the decentralized markets and inadequate use of information technology. These problems could lead to financial risks, threaten fund security, and hamper the development of the draft market. Electronic drafts provide an effective solution to these problems.