Letters of credit may be a necessary evil that prolongs the trade process, but financial regulators in the two cities are pushing blockchain as a way to solve an old problem.
Non-listed companies with turnover of up to HK$100 million will have their credit information shared by lenders. That could push borrowing costs down – or up.
For treasurers at the centre of China’s efforts to cool the bubbling property sector, offshore yields are now so attractive they outweigh the problem of foreign exchange restrictions