Standard Chartered Hong Kong, as one of the participating banks in the Hong Kong Monetary Authority's CargoX Pilot Programme, has successfully completed the "CargoX" pilot project, accumulating practical experience in exploring connectivity with other trade corridors and the application of cross-border trade data, according to Zhitong Finance App.
The Hong Kong Monetary Authority stated that CargoX, launched in collaboration with the Shanghai Municipal Data Bureau, has facilitated 10 trade finance approvals so far, with total loans amounting to HK$180 million. The next phase will extend the model to other mainland provinces and cities.
CargoX connects the Commercial Data Interchange with Shanghai's digital trade platform, enabling the first batch of five pilot banks to access and utilize trade declaration data from the Yangtze River Delta region. This facilitates trade authenticity verification, due diligence on counterparties, and other trade finance processes, allowing Hong Kong enterprises engaged in onshore and offshore trade to obtain loans more quickly.
The first batch of five pilot banks includes Bank of China (Hong Kong), Hang Seng Bank, HSBC, ICBC (Asia), and Standard Chartered Hong Kong. In three transactions under the pilot project, Standard Chartered Hong Kong utilized shipping logistics and trade data provided by CargoX, including cross-border trade background risk assessments, domestic shipping trade scores, and active import-export enterprise indicators, to evaluate enterprises' cross-border trade activities and risk profiles. It also cross-verified shipping and cargo data against customers' declared information to enhance due diligence and trade finance efficiency.
Meanwhile, the relevant data helps improve the transparency and credibility of logistics information, thereby reducing the risk of trade and document fraud. Su Weitang, Head of SME Banking and Greater Bay Area Business at Standard Chartered Hong Kong, said he was pleased to complete the designated test scenarios under the cross-border data proof of concept through CargoX, highlighting the application potential of cross-border shipping and trade data in financing scenarios and addressing pain points in cross-border trade.
The results of the CargoX pilot project demonstrate that the connectivity of shipping logistics and trade data helps improve customer business expansion efficiency, brings more convenient financing experiences to SMEs, further supports the development of the real economy, and promotes opportunities for cooperation with other trade corridors.