Sunday, July 14, 2024
NewsBusiness

BOCHK launches the “corporate e-CNY cross-boundary transaction pilot”and completes the first ever e-CNY cross-boundary transaction for bulk commodity

Bank of China (Hong Kong) (“BOCHK”) has initiated the “corporate e-CNY cross-boundary transactions pilot.” This program has enabled a local pilot enterprise to engage in the cross-boundary trading of bulk commodities by using e-CNY for the first time, marking a significant milestone in cross-boundary settlement.

Working in conjunction with its parent bank, Bank of China, BOCHK has successfully completed the inaugural e-CNY cross-boundary bulk commodity transaction. This was achieved through its digital service channel. Specifically, BOCHK established an e-CNY wallet for Bao-Trans Enterprises Limited on its iGTB NET Corporate Internet Banking platform. This wallet was instrumental in facilitating trading with e-CNY. Subsequently, Baosteel Group Corporation, a major client of Bank of China, utilized e-CNY to settle payments to Bao-Trans Enterprises Limited for the import of iron ore. This transaction is notable as it represents the first time that a cross-boundary settlement of a bulk commodity trade has employed e-CNY throughout the entire process. The total value of the transaction reached approximately RMB24 million.

Xing Guiwei, the Deputy Chief Executive of BOCHK, commented on the significance of this development. He pointed out that the technical capabilities of e-CNY could enhance the value of corporate cross-boundary transactions beyond its usage for individual customer payments. BOCHK has developed an infrastructure that allows local enterprises to create e-CNY wallets via a digital channel, thereby enabling them to utilize e-CNY for various services, including transfers, withdrawals, and exchanges. This has the potential to decrease the costs associated with cross-boundary fund settlement and to increase the transaction efficiency for businesses.

The triumphant execution of this pilot transaction has established a foundation for the standardization of e-CNY use among corporate clients engaging in trade between the Chinese mainland and Hong Kong. This is expected to contribute to the growth of an e-CNY ecosystem and to foster the RMB’s internationalization. Going forward, BOCHK is committed to enhancing its iGTB NET Corporate Internet Banking platform. They aim to expand support for more corporate customers to use e-CNY for cross-boundary settlements and to explore additional e-CNY cross-boundary applications.