The Jinan Area of the China (Shandong) Pilot Free Trade Zone launched an online platform on March 13 to help raise money for foreign-invested companies impacted by the novel coronavirus pneumonia.
The platform, named "Quanmaotong", is supported by Inspur Group, China Construction Bank and Qilu Bank.
According to Zheng Deyan, deputy mayor of Jinan, "Quanmaotong" will make use of government funds and help solve fundraising problem for foreign companies.
The platform uses a big data credit system and other advancing technologies, including cloud computing, block chain, and AI to help foreign trade companies in unsecured fundraising, fundraising without mortgage, or fundraising with light assets.
"In short, most enterprises engaged in international trade make use of an asset-light operating mode. They have specific importers and downstream customs. What they lack is enough capital and complete financial chains," Zheng said.
To solve this problem, the Jinan municipal government aims to connect financial institutions, companies, customs, and tax administration via block chain, and attract highly-qualified firms to the platform via AI.
Only if enterprises have a credit rating which conforms to the regulations, can they enjoy the financial resources on the platform and continue to operate normally.
Officials said that the platform will give strong support to Jinan foreign trade enterprises in expanding their businesses and lowering fundraising risks.