HSBC facilitates first yuan-denominated blockchain letter of credit
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.