SAFE sets operational goal for next year: a comprehensive cross-border financial blockchain services platform

To support the growth of the foreign exchange activity of SMEs and the continuous opening up of capital goods, SAFE will innovate.

Recently, the State Foreign Exchange Corporation held a meeting to say that foreign exchange regulations for the coming year should be in accordance with the principle of security.Improve innovation standards, improve growth and security, deepen reform and opening up of foreign trade, promote technological development and promote good business practices.

It should be noted that in 2021, we will continue to improve the two-in-one management of "macro-prudential and micro-economic management" of foreign trade, further promote cross-border trade and investment, and the pre-investment. . It opens into a stable and cultural environment and instructs investors to create “risk-free exchanges”. According to this plan, SAFE will add two new positions before next year.The first is to improve the cross-border financial blockchain services platform to help SMEs and private enterprises to do better cross-border business and investment and financial activities, the second is to improve national quality control and management of defective products. Before reaching direct investment, we will continue to expand the opening of the two financial markets. We support open areas, new developments and special area developments.

“Although China's foreign trade continues this year, many SMEs still face a significant impact on cross-border financial transactions,” the official said. The director of a cross-border financial services company told reporters. As usual, Chinese small and medium enterprises (SMEs) often opt for loans to pay for their foreign raw materials. However, since the existing letter from the mortgage industry includes data review, it is possible to re-communicate between the bank and investors to identify the accuracy of a lot of business information, making the payment process very lengthy. . As a result, small and medium-sized enterprises of foreign investors often face a shortage of capital and the order is not accepted.

The reporter learned from multiple sources that now many banks are trying to introduce blockchain technology to address the issue of cross-border business asymmetry in financial reporting, while expanding their business to more small and medium-sized businesses. . .

"As SAFE continues to improve its cross-border financial blockchain services platform, it plans to increase its investments in blockchain technology and blockchain applications for more cross-border financial services."The director of the multinational financial institution, quoted above, told reporters.

From the domestic industry point of view, SAFE actively supports the open zone and innovation and development of special zones, providing more space in the free trade zone, the great bay area of Guangdong-Hong Kong-Macao and the Hainan Free Trade Port. New and expanded financial exchanges across borders.

“This does not include the fact that the relevant agencies will soon expand the business of drivers for border management services in Guangdong-Hong Kong-Macao Taiwan district and encourage additional investment from Guangdong, Hong Kong and Macao. that go too far. "An employee of a financial company in Guangdong province told reporters the announcement was made.

The reporter noted that cross-border financial exchanges in the free trade area have continued in recent years, with SAFE actively supporting the region in opening new projects and constructions in special areas. Lingang New Area, a commercial zone landing in the Shanghai Free Trade Zone. More specifically, by focusing on two key sectors: international transport and new energy vehicles, we are providing financial support of more than 5 billion yuan for the development of the COSCO SHIPPING BOX project.

Many business leaders in the free trade area have told reporters that as the area opens up and new developments and developments in the area accelerate, the development area should improve the registration of foreign debt once, financially, the domestic market. Renovating assets and other operating systems, improving economic effectiveness, efficiency and ease of crossing financial boundaries will help the economy to truly improve, faster and better.

Active introduction of blockchain technology

Based on the views of many insiders, SAFE emphasizes strong stakeholder support to help SMEs grow their businesses across financial boundaries by improving their finances.

“Despite the continued rise in foreign exchange in China, it is still difficult for SMEs to access cross-border financial services,” said a director of cross-border financial companies. Under these circumstances, there is a large data asymmetry between businesses, banks and shipping lines, so banks need to communicate more often to verify the accuracy of various exchange information, avoid the risk of financial fraud by virtual business contracts. .. This has enabled many SMEs to obtain financing for their businesses, the inspection process has been very long, leaving many SMEs in difficulty for venture capital.

"Especially in the current situation where the current international shipping capacity is strained and the export of foreign goods is delayed, if SMEs do not receive support" Cross-border trade, when deliveries are slow, they have an impact on the capital. Or follow orders, it's easy to tackle. I dare not guess the problem. "The adoption of blockchain technology has solved major financial difficulties for small and medium-sized businesses in cross-border financial markets.

Many banks are now combining information technology blockchain distribution with the cost of electricity bills to create a new cross-border business platform. . On this platform, banks, traders and shipping companies are connected to the same blockchain network to integrate data exchange and analysis. It compresses the first working file swap in 4-5 days and completes it in a day (dramatically improving performance), making it very efficient at verifying the authenticity of the file. analysis and ready. , Effective Information Regarding Bank Asymmetry and Credit Problems. security concerns.

A staff member from the Regional Financial Services Bureau said, “To realize that technology plays an important role in helping SMEs become financially viable, we are helping local banks to actively use blockchain technology. "

"We encourage local banks to actively adopt third-party blockchain technology service companies, and we will continue to improve the performance of cross-border businesses for small and medium-sized businesses." neutral, as a follow-up, ”he noted. .

Many investors told reporters directly that blockchain technology has transformed financial institutions in financial markets. In the past, cross-border banking services were generally large companies, but through the use of blockchain technology, cross-border financial services can be extended to more SMEs.Blockchain technology also improves the data asymmetry of cross-border financial transactions, allowing banks to provide personalized lending rates based on past cross-border data as well as collection and payment from SMEs, adding competitive fees across borders. . Support for SMEs.

“As SAFE continues to improve its cross-border financial blockchain services platform, we are exploring ways to strengthen the power of blockchain technology to create a diverse market. cross-border financial business transactions. The above statement from the head of the bank's cross-border financial affairs was emphasized. One is to work with specialized financial institutions to exchange information on SMEs across borders and transfer capital to “new loan companies” and strengthen banks. . “Cross-border trade reacts quickly and at high risk. Integration of advanced technologies,The solution to the problem of how high-performance blockchain works is limited, and cross-border blockchain-based financial services have continued to reach more SMEs.

A “new journey” of financial development beyond borders

Some areas such as the Free Trade Zone, Hainan Free Port and the Guangdong-Hong Kong-Macao Great Bay Area will open up larger areas for cross-border financial exchanges, according to SAFE, including "innovation regional open and building support to special areas' as a goal of next year's project.

"We are applying for cross-border financial management services," said the director of foreign finance.

Journalists have learned from various sources that as the management of cross-border trade in the Guangdong-Hong Kong-Macao Greater Bay region continues to improve, many financial companies are planning to include cross-border trade in their strategies. 'investment. In the future, cross-border investments that will provide the inhabitants of the Grande Baie region with a range of cross-border management services will offer more room for improvement.

In addition, many financial companies believe that the cross-border financial innovation of Hainan Free Trade Port will provide new opportunities for expansion.

In December, relevant departments in Hainan Province announced the "Two Rules of Technological Openness and Development of Hainan Free Trade Port" to help large parks set up facilities. engages in international trade and regional markets, and benefits from foreign currency and regulatory implications. recover and develop offshore business incubators, innovation and entrepreneurship bases, technology transfer and other platforms innovate production, education and research, defense expertise, integration of offshore data outsourcing service.

In addition, Hainan-related departments are expected to attract domestic and foreign investment to finance the technology industry, support the development of new technologies, and expand the issuance of foreign investment for new jobs and businesses.

From the point of view of many financial experts, because SAFE promotes innovation and regional development in specialized areas, the industry generally expects Hainan organizations to step in, speed up the opening of capital goods and realize currency and exchange rate gains in certain areas. Return to simplicity of tasks such as single registration of foreign debt and crossing the border of financial markets.

“Now, the Shanghai Free Trade Zone has fulfilled its pioneering role in finance and achieved significant benefits during a limited period of restricted registration and trade at home and abroad. money exchange. The financial director of the Shanghai Free Trade Demonstration Zone told reporters. Historically, companies have had to go to the bank several times to request external debt and payments, but now the right to trade in financial markets allows companies to use cross-border financial transactions that allow companies to register once. Restrictions on external costs, single registration, and separate deductions allow companies to encourage foreign investment to become easier to negotiate.

Reporters learned from many sources that now recognizing good businesses in the Lingang area of ​​the Shanghai Free Trade Demonstration Zone can achieve a high degree of convenience in cross-border payments, complete the RMB, and complete the cross-border payment. It greatly improves the functionality of collecting information on partners and payments only, cross-border payments.

The commodity traders told reporters, “With the new financial support from the relevant companies, we look forward to the operation of cross-border trade and development. cross-border financial transactions based on the acquisition of electricity in the Shanghai Free Trade Demonstration Zone. "

A reporter heard that the Chinese money library in the free trade zone does not comply with the bank's risk management, causing major problems in the warehouse mortgage industry. If the buildings have an additional impact on the new open regional policy. Improve electronic equipment, obtain registrations and loan services for a wide range of products in the free trade zone, strengthen the management and administration of the entire warehouse industry standard system, and provide reliable and transparent services to banks and traders. Companies capable of improving a wide range of products contribute to the growth and development of the industry and promote the continued success of large-scale products in the free market area.