J.P. Morgan Partners with SINOSURE to Enhance Trade Finance Services for Chinese Companies
J.P. Morgan and SINOSURE sign landmark Export Credit Insurance policy agreement
HONG KONG - 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.
The signing of the ’Export Credit Insurance LC Policy Agreement’ was marked by a ceremony in Beijing attended by Daniel Cotti, Global Trade Executive, J.P. Morgan Treasury Services and Zhou Jian, Deputy General Manager of SINOSURE. J.P. Morgan is the first bank headquartered outside Asia to sign such an agreement with SINOSURE, and it marks an important milestone for the bank which is this year celebrating its 90th anniversary in China.
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 2 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.
Daniel Cotti, Global Trade Executive, J.P. Morgan Treasury Services, said: “J.P. Morgan is committed to helping our clients in China grow their business by providing financing for their exports, improving their efficiency, reducing their costs and mitigating their risk. This partnership with SINOSURE will give our clients greater certainty when exporting their goods and services around the world as they deepen their global trading relationships.”
Zhou Jian, Deputy General Manager of SINOSURE, said: “This initiative with J.P. Morgan, the first bank headquartered outside Asia to partner with SINOSURE, will be instrumental in our efforts to further develop China’s trade finance market. The partnership will help Chinese exporters grow their business by simplifying the entire export credit insurance process. By streamlining the many processes involved in cross border trade, it will leave Chinese companies better placed to focus more intently on the strategic growth of their business into new and emerging markets.”
This agreement with SINOSURE further builds J.P. Morgan’s reputation as a global leader in trade finance. The firm is a recognized leader in the provision of trade finance globally, with the firm’s clients, industry peers, magazines and professionals awarding J.P. Morgan numerous trade finance awards over the years.
About China Export & Credit Insurance Corporation
China Export & Credit Insurance Corporation (“SINOSURE”) is China’s only policy-oriented insurance company specializing in export credit insurance. It began operations on December 18, 2001, with capital coming from the Export Credit Insurance Risk Fund as arranged by the State fiscal budget. SINOSURE has formed a nationwide service network, which comprises 18 branches, 6 business management departments and 28 offices, with a representative office in London additionally. SINOSURE is mandated, in accordance with the Chinese government’s diplomatic, international trade, industrial, fiscal and financial policies, to promote Chinese exports and investments, especially exports of high-tech or high value-added capital goods, by means of offering export credit insurance against non-payment risks, and providing services in financing, information and receivables management. SINOSURE underwrites country risk and buyer’s risk, in which country risk includes the control on exchange earnings from buyer’s country, government levy, nationalization and wars etc.; buyer’s risk includes buyer credit risk (payment default, dishonor and bankruptcy, etc.) and buyer bank risk is the risk of issuing bank and confirming bank. More information for SINOSURE is available at www.sinosure.com.cn.
About J.P. Morgan Treasury Services
J.P. Morgan’s Treasury Services business is a full-service provider of innovative cash management, trade, liquidity, commercial card and escrow services -- specifically developed to meet the challenges treasury professionals face today. More than 135,000 corporations, financial institutions, governments and municipalities in over 180 countries and territories entrust their business to J.P. Morgan. J.P. Morgan Treasury Services is one of the world’s largest providers of treasury management services and a division of JPMorgan Chase Bank, N.A., member FDIC. More information can be found at www.jpmorgan.com/ts.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
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