CRI:
The pandemic spread across the globe in 2020. Foreign trade companies are facing severe difficulties due to a sharp decline in global trade. What measures have been adopted in the banking and insurance industries to support the resumption of work and production, and stabilize the overall performance of foreign trade? Thank you.
Guo Shuqing:
Our export situation was better than expected last year. Due to the global economic slowdown, there was no sharp decline in demand for China's products compared to previous years. Some countries even increase their imports from China. So our export situation is quite good. We've rarely seen such a big surplus in trade, which is inconsistent with the trends of the previous years, and this was aided by the special situation. Concerning this, my colleague Mr. Song, who is proficient in export credit insurance, may understand the situation better.
Song Shuguang:
Since the outbreak of COVID-19 early last year, General Secretary Xi Jinping has underscored the vital role of export credit insurance on three occasions. Over the past year, SINOSURE has fully implemented the guiding principles of General Secretary Xi's remarks as well as the decisions of the CPC Central Committee and the State Council. Under the guidance of CBIRC and other relevant departments, our company has actively enforced policies and made contributions to ensure stability on six fronts and security in six areas. During the initial outbreak, we rolled out ten measures to address the urgent need to import medical supplies in the fight against COVID-19. We also published 23 phased and extraordinary measures to ensure stability in foreign trade, increasing our support in six aspects that covered underwriting, compensation, and service. The work has delivered positive results, and progressed as follows:
First, we further increased the coverage of export credit insurance. In light of growing external risks, we carried out active underwriting policies. Last year, SINOSURE underwrote over US$700 billion worth of insured businesses, up 15% year on year, and much higher than the export growth rate. We supported exports worth US$580 billion, accounting for 22% of the total volume of exports — much higher than the average global growth. Last year, we served 147,000 clients, including more than 40,000 new clients, up by 58%, which maintained around 15 million export-related jobs.
Second, we gave firm support to our clients in major markets and industries. SINOSURE has actively promoted progress made at the Belt and Road Forum for International Cooperation and strengthened the cooperation of the third-party market. Last year, our company fully supported exports and investments to countries along the Belt and Road, with a combined business volume of over US$150 billion. SINOSURE has underwritten more insured businesses with the U.S., supporting exports to the U.S. worth over US$50 billion, up by 13%. We also formulated tailored underwriting policies for electronic information and home appliance industries, giving priority to protecting leading companies with global influence and key links, to better serve the smooth operation of industrial chains and supply chains. Last year, we supported the trade volume of the electronic information industry, which exceeded US$100 billion, up by 23%. As for the risks resulting from canceling orders or refusing to accept goods and to pay, our company increased support to guarantee sales for companies before the export, underwriting 3.4 times more than the year before in this insured business .
Third, we effectively mitigated difficulties faced by companies in accessing financing. We combined the export credit insurance risk management mechanism with the financing services of banks. The major works fall into three aspects. First, our company worked together with 167 domestic and foreign banks to provide premium financing services for foreign trade enterprises as well as tailored products. For example, we worked together to roll out the Credit Insurance Financing project to provide premium financing services for micro and small-sized companies. The service offered affordable interest rates and gives companies access to financing through an online review process without requiring a mortgage. Second, our company utilized refinancing and interest subsidy policies. Some of our funds were allocated to micro and small-sized foreign trade companies, which delivered positive results, especially in Jiangsu, Zhejiang, and Shanghai. Third, SINOSURE worked with governments and banks to establish 53 platforms nationwide for financing. Last year, SINOSURE supported companies to obtain financing, with a combined figure of 310 billion yuan, including 196 billion yuan for short-term export credit insurance, up by 34%, supporting over 4,800 companies.
