Five HK banks, HKECIC team up to underwrite risk on domestic sales in China
The collaboration targets to boost insurance protection for Hong Kong exporters.
The Hong Kong Export Credit Insurance Corporation (HKECIC) announced its collaboration with five banks to pilot scheme a “risk-sharing arrangement on domestic sales” in Mainland China.
The Bank of China (Hong Kong), Bank of East Asia, DBS Bank (Hong Kong), Hang Seng Bank and HSBC have teamed up with HKECIC to boost insurance protection for Hong Kong exporters.
In this arrangement, banks and HKECIC will collaborate to assess the creditworthiness of Mainland buyers for credit insurance and export loans.
They will share their assessment results, and both parties will assume equal responsibility for the buyer's non-payment risks. The credit limit for each buyer group will be capped at HK$100m.
“The level of disclosure of credit and financial information varies for some private enterprises in the Mainland, bringing considerable difficulties in credit and risk assessment for these enterprises. HKECIC has proactively reached out to relevant institutions to explore collaboration opportunities to gain better access to credit information on Mainland buyers, thus enhancing its insurance coverage capability for the Mainland market.” told Terence Chiu, Commissioner of HKECIC.