SINOSURE AND EXPORT CREDIT INSURANCE

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SINOSURE AND EXPORT CREDIT INSURANCE
September 15, 2005
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Session Outline 1? Sinosure Profile 2 ?Export
Credit Insurance and Its Underwriting
Risks 3 ?Major Functions of Export
Credit Insurance 4 ?Business Scope and
Products 5 ?Who are Applicable
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1? Sinosure Profile
A.Introduction B.Characteristics C.Mission D.N
ationwide Network E.Overseas Network F.Coverage
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A. Introduction

• 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)

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B.Characteristics

• Market-oriented,
• State-sponsored, Promoting Chinese Export and
  Investment
• Government SupportCentral and local governments
  set up export credit insurance supporting and
  development funds

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C.Mission
Approved by the State Council, Sinosures
mission To support goods ,technology and
service export, especially the high-tech and
value-added machinery and electronic products
export
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D.Nationwide Network
20 branches and sub-branches around the country
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(No Transcript)
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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

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F.Coverage
Over 180 countries and regions
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2.Export Credit Insurance and Its underwriting
risks

• A.Export Credit Insurance
• B.Underwriting Risks

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A.Export Credit Insurance

• Export Credit Insurance provides insured
  exporters guarantee of trade receivables when
  they export goods, service,technology and capital

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B.Underwriting risks

• Commercial risks----Buyer risks
• Bankruptcy or inability
• to pay
• Default payment
• Repudiation of goods

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B.Underwriting risks

• 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

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3.Major Functions of Export Credit Insurance
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• 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

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4.Business Scope and Products
Short-term Export Credit Insurance
Medium and Long-Term Export Credit Insurance
Investment Insurance
Bond and Guarantees
Rating
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A.Short-term export credit insurance
Comprehensive cover
Short-term export credit insurance
Whole turnover insurance
Letter of credit insurance
Specific contract 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
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Factors Determining Premium Rate
Import country risk category
Premium rate
Payment terms
Payment period
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Premium rate determining mechanism

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B.Medium and Long-Term Export Credit Insurance
Buyer credit insurance
Medium and Long-Term Export Credit Insurance
Suppliers credit insurance
The relevant credit period shall be more than one
year and less than ten years Large machinery,
equipment and project export
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C.Investment Insurance
Overseas investment insurance
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

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D.Bond and Guarantee
Financial guarantee
Project finance guarantee
Bond and guarantee
Suppliers credit guarantee
Non-financial guarantee
Bid bond
Performance bond

• Principleto support firms to explore overseas
  markets and assist companies to obtain finance

Advanced payment bond
Quality maintenance bond
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E. Rating

• Credit information and rating
• of both Chinese and overseas
• companies

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• 5?Who are Applicable
• All Enterprises with Foreign Trade Rights in
  China
• Solely Foreign Funded Firms
• Joint Ventures
• State Owned Enterprises
• Private Companies

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SINOSURE IS LOOKING FORWARD TO
HAVING COOPERATION WITH you
Thanks !