1st Cross-border Letter of Credit Blockchain Transaction in China

Global Trade

First Cross-border Letter of Credit Blockchain Transaction in China

HSBC successfully completed the first cross-border Letter of Credit (“LC”) blockchain transaction in China, in a move that takes the digitisation of China’s trade another step closer to becoming a commercial reality.

The live transaction involved China SDIC International Trade Nanjing Company Limited (“SDIC Trade Nanjing”), operator of the largest B2B wool trading market in China, buying a bulk shipment of wool from Fox & Lillie, a wool exporter in Australia and a client of HSBC Australia.

Using Voltron, a blockchain-based documentary trade finance network, HSBC China issued a digitised Letter of Credit (LC) on behalf of SDIC Trade Nanjing. Fox & Lillie then reviewed, verified and uploaded their own trade documents to the platform to complete the transaction.

HSBC’s blockchain-enabled trade transactions have offered an insight into how the technology has the potential to revolutionise conventional trade finance and reduce the time frames and risk involved in cross-border trade.

E-bank Acceptance Draft,Bespoke Solutions for Trade Finance

HSBC is enabling faster and smarter management of trade finance with its smarter banking communication concept. Based on the extensive application of the PBOC’s Electronic Commercial Draft System (ECDS), HSBC has launched its comprehensive E-bank Acceptance Draft solution in response to the diverse needs for e-drafts by trading, service and manufacturing businesses across industries such as auto, steel, medicine and electronics.

This fully digitized solution offers a more convenient and flexible approach to draft issuance, endorsement, collection, discounting,etc. It delivers higher efficiency in AR/AP settlement and capital turnover together with additional benefits including reduced payment risks, more efficient financial operations and cost savings for corporate customers. Furthermore, HSBC has also launched a number of other bespoke solutions such as Bank Acceptance Draft Discounting Express, E-bank Acceptance Draft Pool Pledge and Host-to-Host to address corporate needs for diverse offerings in trade finance.

Bank Acceptance Draft Discounting Express, Faster and Cheaper Discounting Services

Mainland Chinese corporate customers with HSBC accepted Bank Acceptance Draft with no further endorsement are entitled to the following discounting benefits and rights under Bank Acceptance Draft Discounting Express:

  • Free setup of access to ECDS
  • Streamlined and simplified application process for faster discounting services
  • Eligible customers are waived of requirements to provide transactional supporting documents such as the contract and invoice*
  • Better rates of discounting services
  • Account management fee exemption for up to 6 months

* Subject to approval by HSBC

Apply Now

You will be contacted by an HSBC GTRF specialist

E-bank Acceptance Draft Pool Pledge, Bespoke Solution for Trade Finance

A bespoke solution for E-bank Acceptance Draft pool pledge* that enables automated AR/AP management, lower take-up of corporate capital, financial cost savings, more efficient capital operations and optimized cash flow.

Solution highlights:

  • Dynamic management of drafts in the pool
  • Digitally enabled process, streamlined and simplified. When the master agreement on E-bank Acceptance Draft pledge is signed, pledge can easily be conducted online via ECDS.
  • Flexible choice of drawdown amounts, tenors and means of interest payment based on actual needs
  • Trade offerings are available in multiple types and currencies, e.g. DC/guarantee issuance and bank draft acceptance**

*Requirements for E-bank Acceptance Draft pledge: E-bank Acceptance Draft compliant with HSBC requirements. Each pledger is required to hold an RMB settlement account with HSBC

**Requirements of specific trade offerings apply

For more information, please contact your BDM or RM, or call 400-821-8878

Host-to-Host, Comprehensive and Efficient Connect between Systems

This solution directly connects corporate customers’ financial system with the ECDS, which delivers significantly higher operational efficiency for corporate finance professionals. Leveraging the e-draft platform with Host-to-Host function, each corporate can easily set up a center of shared financial services that centrally manages drafts for all local subsidiaries so as to holistically plan and manage working capital, and save financial and operating costs.

For more information, please contact your BDM or RM, or call 400-821-8878

Remarks

This document is issued by HSBC Bank (China) Company Limited (HSBC). The information contained herein is derived from sources we believe to be reliable, but which we have not independently verified. HSBC makes no representation or warranty (express or implied) of any nature nor is any responsibility of any kind accepted with respect to the completeness or accuracy of any information, projection, representation or warranty (expressed or implied) in, or omission from, this document. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of or reliance on this document or any information contained herein by the recipient or any third party.

Any examples given are for the purposes of illustration only. The opinions in this document constitute our present judgment, which is subject to change without notice. This document does not constitute an offer or solicitation for, or advice that you should enter into, the purchase or sale of any security, commodity or other investment product or investment agreement, or any other contract, agreement or structure whatsoever and is intended for institutional, professional or sophisticated customers and is not intended for the use of private individual or retail customers. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. Recipients should not rely on this document in making any investment decision and should make their own independent appraisal of and investigations into the information and any investment, product or transaction described in this document. Unless governing law permits otherwise, you must contact a HSBC Group member in your home jurisdiction if you wish to use HSBC Group services in effecting a transaction in any investment mentioned in this document. This document, which is confidential and not for public circulation, must not be copied, transferred or the content disclosed, in whole or in part, to any third party. The document should be read in its entirety.

All the information set out in this presentation is provided on the best of HSBC's current knowledge and understanding of the relevant law, rules, regulations, directions and guidelines governing or otherwise applicable to RMB trade services but HSBC makes no guarantee, representation or warranty and accepts no liability as to its accuracy or completeness. There may be exchange rate risks if you choose to convert RMB into other currencies as RMB is currently not freely convertible and is subject to certain conversion restrictions. Please refer to any updates that shall be published or issued by HSBC from time to time including notices that we place at our HSBC branches.

Copyright. HSBC Bank (China) Company Limited 2019. ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Bank (China) Company Limited.

Trade Transaction Tracker

HSBCnet Mobile App with Trade Transaction Tracker – Much quicker and easier way to access your trade transactions…anytime, anywhere. At HSBC, we are continuing to provide innovative tools to help make your life simpler 24/7.

Remarks:

The HSBCnet Mobile App with Trade Transaction Tracker is available in select countries. Visit the App Store, search “HSBCnet” and download the HSBCnet Mobile app today. Apple, and iPhone are trademarks of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc. Baidu App Store is a service mark of Baidu Inc. We do not charge for the App. However, your mobile network operator may charge you to access the App and these charges may vary if you access the App when abroad. You are responsible for these charges.

Watch the video and see how it works

 

What you will need

  • An Apple iPhone or Android device
  • The latest version of the HSBCnet Mobile app downloaded from the Apple App Store or Baidu App Store*
  • HSBC Trade Account Number
  • HSBC Instant@dvice email address**
  • Recent transaction reference number linked to the above account

* You only need to be registered for Instant@dvice to access the HSBC Trade Transaction Tracker, HSBCnet registration is not required.
**If you are not yet an HSBC Instant@dvice customer, please contact your local HSBC Relationship Manager.

Scan QR code to download HSBCnet Mobile app for Andriod devices

Scan QR code to download HSBCnet Mobile app for IOS devices

 

Easy 3-step set-up

  1. Open the app
  2. Enter in your HSBC Trade Account number, Instant@dvice email address and bill or DC or guarantee reference number
  3. Enter in the confirmation code provided to your email address
  • Any inquiry about Trade Transaction Tracker, please contact global trade and receivable finance client service center.

Mailbox:gtrf_contact_center@hsbc.com.cn
Hotline:400-821-8878

Contact us

Commercial Banking Service Hotline

400 821 8878

 

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