On March 26, 2017, China's largest professional e-commerce exhibition — the 2017 IEBE (Guangzhou) International E-commerce Expo opened in Guangzhou, with KVB Kunlun International Global Capital Group invited to participate. This year's IEBE theme was "Digital Economy, Innovative Ecosystem," attracting nearly a thousand exhibiting enterprises and tens of thousands of visitors.

As an internationally renowned financial services provider whose core business focuses on full-chain corporate foreign exchange services, KVB Kunlun International's professional team offers enterprises foreign exchange management systems, global settlement and payment, as well as risk management expertise, and further won the 2016 Highly Valuable Cross-border E-commerce Service Institution Award. This selection event has been held for four editions, with over 300 enterprises participating each year, making it a bellwether of the e-commerce industry.

The Exhibition Theme Hit Enterprises' Pain Points, and Visitors Seeking Consultation Came in a Steady Stream

In recent years, black swan events have frequently occurred in financial markets: the decoupling of the Swiss franc from the euro, Brexit, and Trump's election have all caused significant volatility in the foreign exchange market. The impact of these potential risks on the cross-border e-commerce industry has been particularly evident. Therefore, how to accelerate capital turnover, reduce exchange rate costs, and avoid risk events has become the first step in cross-border e-commerce risk prevention. At this IEBE, KVB Kunlun International, with the theme "Corporate Foreign Exchange Management in the Red Ocean of Cross-border E-commerce Competition," delved into how to enhance the foreign exchange management capabilities of cross-border e-commerce.

KVB Kunlun International Global Dealing Manager Mr. Zheng Xiaorong Accepting a Media Interview

On the day of the exhibition, visitors seeking consultation came in a steady stream at KVB Kunlun International's booth. For trading enterprises, exchange rate fluctuations directly affect their profit margins. The market environment is constantly changing, and the difficulty for enterprises in foreign exchange management lies in the fact that it requires continuous learning and uninterrupted tracking. Foreign exchange risk exists in various operational and financial activities of enterprises, yet many e-commerce enterprises are unaware of these risks. Some enterprises, though aware of the impact of foreign exchange, are often at a loss when facing changes. KVB Kunlun International's exhibition theme undoubtedly hit their pain points.

In their exchanges with KVB Kunlun International, enterprise representatives expressed that they had come to realize foreign exchange management is such a complex, comprehensive management system. Enterprises need mature, professional foreign exchange financial solutions to truly and effectively avoid the risks brought by exchange rate fluctuations.

Identifying Risks for Cross-border E-commerce Enterprises, the Roundtable Forum Won Widespread Praise

At the interactive sub-forum of the IEBE exhibition, KVB Kunlun International invited senior management from two companies — DHgate and "Youkeshu" — to hold a roundtable forum, sharing with the audience the current opportunities and risks in cross-border trade, as well as how cross-border e-commerce enterprises can conduct foreign exchange management in a red ocean market. The vast majority of cross-border trade enterprises present had not realized the potential risks that exchange rate fluctuations pose to their businesses, and KVB Kunlun International's insights sounded an early warning bell for enterprise managers.

The KVB Kunlun International Sub-forum at IEBE Was Packed with People, with Every Seat Filled

KVB Kunlun International Global Dealing Manager Zheng Xiaorong mentioned at the forum that the "Belt and Road Initiative," as China's development strategy for "going global," will bring enormous opportunities to enterprises for a long time to come. On one hand, when facing the 65 countries along the route, enterprises must make greater efforts in capital financing, goods circulation, and management efficiency, which also poses challenges. On the other hand, as the trade volume of cross-border trade grows, the risks brought by exchange rate fluctuations are also magnified. In recent years, fluctuations in the RMB exchange rate and the frequent occurrence of "black swan" events have made the cost and operational risks faced by cross-border e-commerce enterprises even more significant, so foreign exchange management and exchange rate risk control are highly necessary for enterprises.

"The most direct feeling from cooperating with KVB Kunlun International is peace of mind and cost savings."

From right: KVB Kunlun International Global Dealing Manager Zheng Xiaorong, speaker Ms. Dong Xiaoling, and Mr. Pan Da

At the forum, Dong Xiaoling, Senior Director of DHgate's Financial Business Division, said that when engaging in cross-border trade, enterprises generally face two difficulties: one is the losses caused to enterprise pricing and acquiring due to exchange rate fluctuations during the multi-currency acquiring process; the other is that China only accepts RMB settlement for inbound funds, so during acquiring, enterprises undergo two currency conversions, and this process also causes exchange rate losses. Cooperating with KVB Kunlun International to launch corresponding foreign exchange financial services helps enterprises avoid losses from exchange rate fluctuations and secondary currency conversion, and the user feedback received has far exceeded expectations.

Pan Da, Senior Supervisor of "Youkeshu's" Finance Department, stated that as a cross-border e-commerce company engaged in both import and export trade, "Youkeshu" has very extensive needs in foreign exchange management. Through foreign exchange position management and providing foreign exchange advice, KVB Kunlun International has helped Youkeshu obtain additional financial income. KVB Kunlun International also provides effective advice on foreign exchange management, improving our capital utilization efficiency through T+0 trade settlement and highly competitive pricing.

Audience members raised questions one after another regarding the foreign exchange management issues they had encountered

KVB Kunlun International Once Again Wins the "Highly Valuable Cross-border E-commerce Service Institution" Award

By alerting enterprises to potential risks and safeguarding their interests through optimized management, KVB Kunlun International's efforts and long-term vision delivered to clients received unanimous recognition from cross-border e-commerce enterprises and the organizers. At the Guangzhou "Flower" Night awards ceremony held that evening, KVB Kunlun International once again won the "Highly Valuable Cross-border E-commerce Service Institution" Award.

Zheng Xiaorong (5th from right) attended the IEBE Awards ceremony and accepted the award on behalf of KVB Kunlun International Global Capital Group

The "Highly Valuable Cross-border E-commerce Service Institution" Award

At the awards ceremony, Global Dealing Manager Zheng Xiaorong stated that over the past 15 years, KVB Kunlun International has served numerous enterprises from different countries and different industries, and in recent years we have also been vigorously promoting services targeting cross-border e-commerce enterprises. KVB Kunlun International supports efficient settlement in 129 different currencies worldwide, covering all the currencies of the "Belt and Road" countries, providing cross-border e-commerce enterprises with more convenient and rapid global settlement services. Against the backdrop of the country encouraging enterprises to "go global," KVB Kunlun International, as the most influential non-bank financial institution in Oceania, has a responsibility to safeguard cross-border e-commerce enterprises, reduce financial risks, and serve as a strong guarantee for enterprises going overseas. KVB Kunlun International Global Capital Group will also continue to leverage its own advantages to help more Chinese enterprises emerge on the international stage and create brilliance together.