September 15, 2005 SINOSURE AND EXPORT

September 15, 2005

SINOSURE AND EXPORT SINOSURE AND EXPORT

CREDIT INSURANCECREDIT INSURANCE

SessionSession OutlineOutline

11 、 、 Sinosure ProfileSinosure Profile

2 2 、、 Export Credit Insurance and Export Credit Insurance and

Its Underwriting RisksIts Underwriting Risks

3 3 、、 Major Functions of Export Major Functions of Export

Credit InsuranceCredit Insurance

4 4 、、 Business Scope and ProductsBusiness Scope and Products

5 5 、、 Who are ApplicableWho are Applicable

11 、 、 Sinosure ProfileSinosure Profile

A.Introduction

B.Characteristics

C.Mission

D.Nationwide Network

E.Overseas Network

F.Coverage

• Founded on December 18, 2001

• Only Officially supported Export

Credit Insurance Agency in

China,like US EXIM Bank, but not

provide loan

• Wholly Owned by the Chinese

Government (Ministry of Finance)

A. Introduction

B.Characteristics

•Market-oriented,

State-sponsored, Promoting

Chinese Export and Investment

•Government Support:Central

and local governments set up

export credit insurance

supporting and development

funds

C.Mission

Approved by the State Council, Sinosure’s mission: To support goods ,technology and service export, especially the high-tech and value-added machinery and electronic products export

D.Nationwide Network

20 branches and sub-

branches around the country

昆明

E.Overseas Network

• Representative office in the U.K.

• Member of International Union of Credit and Investment Insurers

• Close cooperation with other Export Credit Agencies,including Euler-Hermes,Coface,US EXIM Bank

• 28 credit rating channels worldwide

F.Coverage

Over 180 countries and Over 180 countries and regionsregions

A.Export Credit Insurance

B.Underwriting Risks

22..Export Credit Export Credit InsuranceInsurance and Its underwriting and Its underwriting risksrisks

A.Export Credit Insurance

Export Credit Insurance provides ins

ured exporters guarantee of trade r

eceivables when they export goods,

service,technology and capital

B.Underwriting risks

Commercial risks----Buyer

risks

• Bankruptcy or inability

to pay

• Default payment

• Repudiation of goods

Political risks----Country risks

• Restrictions or prohibitions of foreign

exchange payment

• Restrictions or prohibitions on import

transactions

• Cancellation of an import license

• Protracted payment by government

• War,revolution or similar events

B.Underwriting risks

3.Major Functions of 3.Major Functions of ExportExport Credit Insurance Credit Insurance

• To help exporters adopt flexible

payment terms and expand export

• To provide finance facilities

• To manage account receivables and

set up risk management mechanism

• To make compensation and guarantee

the stability of business operations

4.Business Scope and Products

Short-term Export Credit InsuranceMedium and Long-Term Export

Credit Insurance

Investment Insurance

Bond and Guarantees

Rating

A.Short-term export credit insurance

Short-term export credit insurance covers export transactions under payment terms of D/P 、 D/A 、 OA or L/C for less than 2 years

Short-term export credit

insurance

Comprehensive cover

Whole turnover insuranceLetter of credit

insuranceSpecific contract insurance

Factors Determining Premium Rate:

Payment periodPayment period

Import country risk category

Import country risk category

Payment termsPayment termsPremium

rate

Payment terms

Paymentperiod

Import country risk categoryA1

A2

B1

B2

C1

C2

D1

D2

L/C

0-30days

low            

31-90days

91-180days

D/P 0-30days

D/A,OA                

D/P 31-90days

D/A,OA                

D/P 91-180days

D/A,OA               high

Premium rate determining mechanism

Medium and Long-Term Export Credit Insurance

Buyer credit insurance

Supplier’s credit insurance

The relevant credit period shall

be more than one year and less

than ten years

Large machinery, equipment and

project export

B.Medium and Long-Term Export Credit Insurance

Investment insurance

Overseas investment insurance

Inbound investment insurance

• To promote overseas investment by enterprises in China and foreign investment into China

• Insurable risks: expropriation,restrictions of foreign exchange transaction,war damage,government breach of contract

C.Investment Insurance

Bond and

guarantee

Financial guarantee

Non-financial guarantee

Project finance guarantee

Supplier’s credit guarantee

Bid bond

Performance bond

Quality maintenance bond

Advanced payment bond

•Principle:to support

firms to explore overseas

markets and assist

companies to obtain

finance

D.Bond and Guarantee

E. Rating

• Credit information and rating

of both Chinese and overseas

companies

5 、 Who are Applicable

All Enterprises with Foreign Trade Rights in China

A. Solely Foreign Funded FirmsB. Joint VenturesC. State Owned EnterprisesD. Private Companies

SINOSURESINOSURE IS LOOKING FORWARD TO IS LOOKING FORWARD TO

HAVING COOPERATION WITH HAVING COOPERATION WITH

youyou

Thanks !Thanks !