The Nanning branch of Industrial and Commercial Bank of China (ICBC) recently handled the bank's first capital risk business with 500 million yuan ($73 million).

It made use of the cross-border RMB policy opportunities in which banks in the China (Guangxi) Pilot Free Trade Zone (FTZ) can issue short-term RMB funds to overseas banks. In this instance, overseas banks act as inviting banks, while domestic banks provide financing funds but do not bear credit risks.

This business uses the cross-border financial blockchain platform of the State Administration of Foreign Exchange to conduct an on-chain inspection of customs export declarations, control the authenticity of trade backgrounds, shorten the approval process of financing business, and reduce the financing cost of enterprises.

The Nanning area of the Guangxi FTZ. [Photo/WeChat account: gh_652f5a9ad0e6]