The Hong Kong Export Credit Insurance Corporation has completed its first "risk-sharing arrangement on domestic sales in the mainland" deal in partnership with The Hongkong and Shanghai Banking Corporation, approving a credit limit for the Hong Kong office of a mainland buyer for a Hong Kong exporter.
The HKECIC said this move facilitates the exploitation of opportunities stemming from the economic development of China and the Greater Bay Area, while ensuring the secure development of the mainland market.
HKECIC commissioner Terence Chiu Man-chung said that the mainland has consistently been a crucial insured market for the company, currently representing their largest credit limit commitment.
This first insurance deal illustrates that, despite the current challenging economic environment, exporters can still expand their business across various industries in the mainland by seeking suitable trading partners.
HKECIC expressed gratitude to the banking industry for its support.
Given the potential for increased payment difficulties post-Christmas, the HKECIC urges exporters to remain vigilant, monitoring credit risks and the payment performance of buyers to prudently manage credit risks.
