BUCE records first transit transaction between residents of China

BUCE has registered the first ever transit transaction between two residents of the People’s Republic of China. On December 14, 2021, a Hong Kong-based company sold an 80-tonne batch of frozen beef worth 354,000 USD to a company from the Chinese Mainland. Previously, only companies from Russia and Baltic Rim countries made such transactions seeking to hedge their risks.

“The use of exchange trades as a hedging mechanism is a sign of confidence in the Belarusian Commodity Exchange on the part of the Chinese business community. Both the participants of the transit transaction already had some positive experience of working on BUCE, but they mainly dealt with Belarusian enterprises. This time the Chinese participants decided to leverage our trading platform as a means to minimize the risk of the other party defaulting on its obligations. In fact, this is a new stage in the development of cooperation between Belarus and China in the field of exchange trading, because now these are not commodities that are exported but BUCE’s services as a guarantor of proper fulfillment of contractual obligations. We hope that this pilot transaction will serve as a good example for other Chinese companies, and in the future the volume of transit trade involving Chinese residents will keep growing”, BUCE press service reported.

As of December 1, 2021, there were 64 Chinese companies registered on BUCE, which is 2 times more than in 2020. BUCE’s trading platform was mostly used for exporting lumber, rapeseed oil and sugar to China, while the Belarusian companies purchased steel pipes, sheets, and other ferrous metal products