Credit risk index launched for exporters

Hong Kong Export Credit Insurance Corporation launched an export credit risk index, the first of its kind in the city, for exporters to take reference from.

Working with Dun & Bradstreet China, the organization released yesterday the HKECIC - D&B Export Credit Risk Index, which is compiled to provide an indicator to reflect the market sentiment relating to export trade and export credit risk in major markets and industries.

The indicator covers five markets -- Canada, mainland China, Germany, the United Kingdom and the United States. Each market has three industry indices -- electrical appliances, electronics and textile and clothing.

With the index, HKECIC expects the local exporters can better understand the global business environment as well as identify potential market risk.

Dennis Ng Wang-pun, chairman of the HKECIC advisory board, said the city's recovery in exports was disappointing after China's reopening last year, as the data from January to November was still 10 percent lower than a year ago. It indicated that the headwinds facing local exporters didn't decrease, including inflation, higher costs, high interest rates and rising geopolitical tensions.

But Ng thinks opportunities come together with challenges, such as the trade with mainland cities within the Greater Bay Area and members of the Association of Southeast Asian Nations. Thus, Ng called exporters to manage their credit risks more carefully when they expand their business.