XTransfer, a Hong Kong-based B2B financial technology platform, recently introduced its latest suite of financial solutions for Hong Kong’s foreign trade SMEs during a launch event held at Sky100 in Hong Kong.
Representatives from financial institutions attended the event to learn about the new solutions introduced by XTransfer, including King Leung, head of financial services and fintech at Invest Hong Kong. The solutions have been developed to address longstanding challenges faced by small and medium enterprises in Hong Kong regarding trade settlements with China. These services, including foreign exchange services and global payment and collection solutions, help to meet the specific needs of foreign trade SMEs, facilitating compliant, efficient, and cost-effective transactions.
Hong Kong is shaping up to become a strategic bridge between China and the global markets. According to the World Trade Organization, Hong Kong ranked as the tenth largest exporter of merchandise trade, with exports surpassing USD 609 million in 2022. However, many Hong Kong SMEs continue to face significant obstacles in trade settlements with China. Examples include difficulties in opening accounts with traditional banks, high exchange losses, long remittance time, and high remittance costs.
Key features unveiled by XTransfer at the event include payment and collection accounts that are facilitated through the company’s partnerships with international banks such as DBS Bank, Citibank, and Deutsche Bank. These accounts enable clients to pay Chinese suppliers or receive payments from global buyers for physical commodity trade through XTransfer’s platform.
XTransfer’s new account-to-account payments feature will also allow Hong Kong-based foreign traders to transact with Chinese suppliers that are part of XTransfer’s clientele. The feature will provide the same convenience as a local bank transfer and enable instant payments for goods, eliminating hurdles traditionally encountered by SMEs when making cross-border transactions.
In addition, XTransfer has announced the launch of a new tool that can forecast the outlook for foreign trade exports one to three months in advance. This indicator could provide valuable insights for businesses to fine-tune their decision-making processes and risk assessments.
According to XTransfer, Guangdong, Zhejiang, and Fujian have emerged as the top three provinces for payments among their SME clients in mainland China. Moreover, the top three export categories were revealed to include mechanical appliances and parts, base metals and their manufacturers, and textile raw materials and textile products.
As Hong Kong strives to establish itself in the global trade landscape, XTransfer’s solutions ensure that Hong Kong SMEs can tap into trade opportunities available in the China market.