On April 26, the Qinzhou branch of Beibu Gulf Bank in Guangxi utilized the pilot policy of cross-border transfer of domestic credit assets in the China-Malaysia Qinzhou Industrial Park to transfer approximately 10 million yuan ($1.38 million) of domestic forfaiting assets under a letter of credit financing for a car sales project of a Qinzhou enterprise to the Seoul branch of Bank of Communications.

This milestone signifies the breakthrough of zero in the cross-border transfer of domestic credit assets for urban commercial banks in Guangxi.

This transaction is not only beneficial for enterprises to leverage two markets and resources, reduce receivables financing costs, but also helps domestic banks activate resources, optimize asset-liability structure, enhance operational efficiency, and positively promote the allocation of high-quality domestic RMB financial assets by overseas banks and enrich cross-border RMB two-way flow channels.

In recent years, the pilot policy of financial innovation in the China-Malaysia Qinzhou Industrial Park has been replicated and expanded three times, with the reform and innovation dividends being released in a broader scope.

The overseas implementation scope of the cross-border transfer of domestic credit assets business has expanded from the ten ASEAN countries to the member countries of the Regional Comprehensive Economic Partnership (RCEP) and China's Hong Kong and Macao regions.

Since the implementation of the cross-border financial innovation pilot policy in August 2020, financial institutions in the jurisdiction of Qinzhou have conducted cross-border transfers of domestic credit assets exceeding 8 billion yuan, broadening financing channels for numerous enterprises and saving financing costs.