China's trade financing sector maintains solid momentum: report

Tourists admire the skyline view of Lujiazui area at the Bund in Shanghai, east China, Jan. 6, 2020. (Xinhua/Wang Xiang)

BEIJING, Aug. 30 (Xinhua) -- Trade financing in China has maintained a sound growth momentum despite a challenging global trade environment in the past two years, according to a report from the China Banking Association.

In 2019, the business volume of international settlement at Chinese commercial banks totaled 6.89 trillion U.S. dollars, a slight decrease from the 2018 level, the report showed.

Favorable factors for the development of the country's trade financing business include progress in the Belt and Road construction, the development of pilot free trade zones, the integration of the Yangtze River Delta, the coordinated development of the Beijing-Tianjin-Hebei Region, the construction of Guangdong-Hong Kong-Macao Greater Bay Area and the internationalization of the yuan, it said.

The report also noted that with further tightening of regulations, Chinese commercial banks are witnessing rising pressure from compliance risks this year.

Meanwhile, it warned that commercial banks should enhance risk prevention in cross-border businesses amid strong global efforts against money-laundering.