Chinese Bank of Jiangsu in export trade finance blockchain pilot

Monday 25 March 2019 11:23 CET | News

China’s State Administration of Foreign Exchange has announced running a blockchain pilot to address cross-border trade finance challenges for SMEs.

China Financial News reported that the pilot started with the regional Bank of Jiangsu with the aim of increasing financial support but also reducing risks. The blockchain addresses the lifecycle for an export receivable financing transaction starting with the SME applying for financing. It tracks acceptance, verification of customs declarations, review, registration and lending. The result was a reduction in time and improved convenience for the SME.

This is one of several Chinese trade finance initiatives. One of the earlier projects was from Zheshang Bank which launched its Zheshang Chain in August 2017. By the end of June, it had processed 2,600 receivables worth USD 3.9 billion and issued a securitized loan note of USD 68 million. A consortium of banks led by China’s central bank is involved in the Bay Area Trade Finance Blockchain Platform which targets trade with Hong Kong and Macau.

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Keywords: Chinese Bank of Jiangsu, Chinas State Administration of Foreign Exchange, blockchain pilot, blockchain, cross-border trade finance, trade finance, SMEs, China, Asia, APAC, Trade Finance Blockchain Platform
Countries: World