Wecast Network, Inc. (NASDAQ: WCST) has formed a Joint Venture (“JV”) with Rural Commercial Bank (Beijing) Information Technology Limited or the Rural Commercial Bank Development Alliance (“Bank Alliance”), for the purposes of introducing to and integrating Wecast´s V PaaS with the Alliances 70+ rural commercial lending member banks across China, the company said.
The JV will be 80% owned by Wecast.
In recent years, many Chinese rural commercial banks have been transformed from rural credit unions to better finance the agricultural sector and farmers, as financing bottleneck is a common challenge for small farms.
Farms, which employ almost a third of the China´s 1.4 billion people, yield about 9 percent of China´s gross domestic product, though with low productivity. The annual turnover of agricultural products, including seafood, flowers and fresh products (which are traded in 462 large-scale agribusiness markets across China), is more than 4.8 trillion RMB and is financed and settled through individual Rural Commercial Banks (“RCB”) which are members of the Bank Alliance.
Wecast Network is aiming to be the provider of total B2B business solutions for today´s constantly evolving business landscape. With a focus on ´BASE´ technology and infrastructure (Blockchain, Artificial Intelligence, Supply Chain & Exchanges) to power our V PaaS (Virtual Platform as a Service), WCST is creating a closed trade ecosystem for buyers and sellers designed to eliminate supply chain and transactional middlemen and create a more direct and margin-expanding trading path for principals.