Enterprises engaged in foreign trade in North China's Shanxi province have been actively using the pilot platform for cross-border financial blockchain services since its launch in October 2019, according to the Shanxi branch of the State Administration of Foreign Exchange.

At the end of last year, 26 banks across Shanxi handled 391 transactions across four financial service categories through the pilot platform. The cumulative loan amount was $1.06 billion, benefiting 75 companies, of which small and medium-sized enterprises (SMEs) accounted for more than 95 percent of the total.

The Shanxi branch of the State Administration of Foreign Exchange matched the financing needs of enterprises and increased enterprises' enthusiasm to handle business through the pilot platform.

To further reduce SMEs' financing costs in the foreign trade sector, the branch has promoted several local banks to reduce fees for enterprises. The average loan interest rate of banks through the platform was 3.7 percent, down about 1.2 percentage points from before the platform went into operation. 

These fee reductions have received support from banks and significant participation by enterprises engaged in foreign business. 

Currently, the pilot platform is developing rapidly, with four cross-border financial blockchain services in operation in the province. The Shanxi branch of the State Administration of Foreign Exchange will continue to expand the platform's application, further enhance the level of trade and investment facilitation, and promote the healthy and stable development of the province's foreign-related economy.