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Hong Kong and Shenzhen Launch Pilot Trial for Cross-Border Credit Checks in Greater Bay Area

Hong Kong and Shenzhen have launched a pilot trial for cross-border credit checks in the Greater Bay Area. The trial focuses on credit report verification by credit reference agencies and commercial banks. The data verification platform aims to monitor cross-border data flows without disrupting business operations.

Hong Kong and Shenzhen have initiated a pilot trial to test cross-border information verification between the two cities, as part of their efforts to facilitate the exchange of business data within the Greater Bay Area (GBA). The initial phase of the trial will focus on credit report verification by credit reference agencies and commercial banks, with WeBank, a Shenzhen-based virtual lender, providing the underlying technology for the data-flow platform.


The establishment of a legal and regulatory framework for screening data entering and leaving mainland China has raised concerns among observers who fear that stringent requirements, including security assessments, could impact Hong Kong's role as a base for foreign investors managing their mainland operations. The new data verification platform aims to address these concerns by allowing for the monitoring of cross-border data flows without disrupting normal business operations.


During the trial, Shenzhen Credit Services and Nova Credit in Hong Kong will utilise the platform to verify corporate credit reports, while Baihang Credit Services in Shenzhen and Fusion Bank in Hong Kong will use it for credit information verification. Additionally, the Bank of East Asia in Hong Kong will leverage the platform to conduct credit checks for customers at its branches in both mainland China and Hong Kong.


Credit verification plays a crucial role for banks and financial institutions in assessing clients, but restrictions on cross-border data transfers between mainland China and Hong Kong have hindered the process. The pilot program aims to build the necessary infrastructure to support cross-border digital services, making life and work more convenient for residents and facilitating business expansion for companies operating in the region.


This data verification platform represents another significant step towards strengthening data cooperation within the Greater Bay Area, which is a Chinese government initiative to integrate Hong Kong, Macau, and nine cities in southern Guangdong province into a unified economic and business hub.

In December, the Hong Kong government announced its plans to launch a pilot program for cross-border data transfer, covering areas such as health and banking. This initiative follows an agreement reached in July between Hong Kong and the Cyberspace Administration of China on draft rules governing the secure flow of data within the Greater Bay Area.


The data verification platform is built on distributed data-transfer protocols and utilises the mainland blockchain platform FISCO BCOS. It conducts verifications using hash values, which are unique digital fingerprints assigned to data. Importantly, the platform does not transfer or store cross-border data, ensuring data privacy and security.

 
  • Hong Kong and Shenzhen have launched a pilot trial for cross-border credit checks in the Greater Bay Area.

  • The trial focuses on credit report verification by credit reference agencies and commercial banks.

  • The data verification platform aims to monitor cross-border data flows without disrupting business operations.


Source: SCMP

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