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China’s Guangdong Grants Small Business Unsecured Loan by Blockchain-based Financing Platform

To relieve the difficulty of financing cost of small and medium-sized enterprises, Guangdong launched a blockchain-based financing platform and issued the first online unsecured blockchain financing loan in China Thursday.

The platform covers 213 types of government data from 26 government agencies. It is the first blockchain-based platform to evaluate the business credit of small and medium-sized business in the whole province by collecting the information of more than 11 million enterprises in the whole province and carrying out enterprise risk rating that will help small companies in the region receive loans faster from commercial banks.

After launching, the platform accepts the first online unsecured financing credit based on blockchain technology and passes the line audit, with a time of no more than 3 minutes. The new platform could be the fruit of a government initiative launched in July to create a blockchain financing platform to connect with nearby Hong Kong and Macao to help small businesses get loans easier.

According to the introduction of OneConnect, the technical supporter of the financing platform, the platform has six major characteristics, including complete product, matching registration, fast financing, flexible service, strong security and strict supervision, especially through the use of blockchain technology, it has established information sharing and privacy protection through the application of artificial intelligence, blockchain, cloud computing, big data and other emerging technologies. OneConnect, a Chinese company that has been the blockchain arm of insurance company Ping An, filing for a $500 million U.S. IPO on New York Stock Exchange (NYSE). The company has successfully filed two blockchain services includes Cross-border Trade Platform in Tianjin Port and OneConnect blockchain.

The mechanism of protection and mutual trust not only makes the enterprise information true and unchangeable, but also enables the financial institutions to query the enterprise information, which can play a role in solving the financing problems of manufacturing, foreign trade and science and technology innovation.

For example, when manufacturing enterprises apply for supply chain financing, the blockchain technology can cross verify the order data, ensure the authenticity and avoid repeated borrowing. Because the platform integrates a large number of intellectual property loan products, thus simplifying the 60% application process of enterprise loans.

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