HSBC fa­cil­i­tates first yuan-de­nom­i­nated blockchain let­ter of credit

Global Times US Edition - - BIZUPDATE - By Huang Ge Page Ed­i­tor: chu­[email protected]­

HSBC, which was en­tan­gled in help­ing US ar­rest Huawei’s Chief Fi­nan­cial Of­fi­cer Meng Wanzhou, is at­tach­ing im­por­tance to the growth of the Guang­dong-hong Kong-ma­cao Greater Bay Area that of­fers am­ple fi­nan­cial ser­vices op­por­tu­ni­ties, but ex­perts warned that if the Uk-based bank hopes to fur­ther ex­pand in the Chi­nese mar­ket, it should not play more un­der­handed tricks against China.

HSBC said on Tues­day that it had helped a Shen­zhen-based elec­tron­ics man­u­fac­turer com­plete a yuan-de­nom­i­nated blockchain-based let­ter of credit trans­ac­tion.

This pi­lot deal, which was pro­cessed us­ing the Voltron blockchain plat­form, in­volved Hong Kong-based MTC Elec­tronic ex­port­ing a ship­ment of liq­uid crys­tal dis­play parts and pan­els to its par­ent com­pany, Shen­zhen MTC Co, across the border from Hong Kong.

The Greater Bay Area, which makes use of such ad­van­tages as Shen­zhen’s high-tech­nol­ogy man­u­fac­tur­ing sec­tor, Hong Kong’s fi­nan­cial mar­ket and Ma­cao’s tourism in­dus­try, is a great at­trac­tion to for­eign com­pa­nies, and HSBC is no ex­cep­tion, said Cao Yuanzheng, chief econ­o­mist at Bank of China In­ter­na­tional.

HSBC, like many do­mes­tic and for­eign fi­nan­cial in­sti­tu­tions, is striv­ing for business and can­not give up such an at­trac­tive chance to de­velop in the re­gion, Cao told the Global Times on Tues­day.

But HSBC is un­likely to find an easy growth path in the Chi­nese mar­ket com­pared with the past be­cause what the bank did to Huawei has af­fected its rep­u­ta­tion and also af­fected eval­u­a­tions by its Chi­nese clients, ex­perts noted.

HSBC is an ap­ple-pol­isher cir­cling around China and the US – it longs for prof­its from the Chi­nese mar­ket while care­fully seek­ing self-pro­tec­tion un­der pres­sure from US hege­mony, the so-called long-arm ju­ris­dic­tion, said Wang Yi­wei, a Chi­nese ex­pert.

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