Partnership to enhance trade finance services for Chinese companies
Mar 23, 2011
J.P. Morgan has signed a landmark agreement with China’s Export & Credit Insurance Corporation, SINOSURE, a move which will enhance the services offered to Chinese companies involved in the export of goods and services, while improving their efficiency and reducing their risk.
Under the agreement, J.P. Morgan will provide a wide range of trade finance solutions to Chinese exporters, enabling them to enter new markets they previously could not consider, and will assist these enterprises by providing financing for their trade finance operations, improving their efficiency and reducing their risk. SINOSURE will provide insurance cover to J.P. Morgan on export Letters of Credit (LCs) issued by financial institutions globally in favor of Chinese companies for a financing tenor of up to two years.
Through the ‘Export Credit Insurance LC Policy Agreement’ with SINOSURE, Chinese enterprises, which previously had to seek financing from banks and insurance services from SINOSURE separately, will now have the convenience of obtaining financing and risk mitigation from J.P. Morgan, which will in turn obtain insurance cover from SINOSURE. This partnership will support the interests of Chinese companies internationally by streamlining their export product processes and structures and enhancing the manufacturing industry’s growth prospects.