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 !