China Export & Credit Insurance Corporation ( zh, s=中国出口信用保险公司, t=中國出口信用保險公司, p=Zhōngguó Chūkǒu Xìnyòng Bǎoxiǎn Gōngsī ), commonly known as Sinosure ( zh, s=中国信保, t=中國信保, p=Zhōngguó Xìnbǎo, labels=no), is a major Chinese
state owned enterprise
A state-owned enterprise (SOE) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goo ...
(SOE) under the administration of
Ministry of Finance of the People's Republic of China
The Ministry of Finance of the People's Republic of China is the Constituent departments of the State Council, constituent department of the State Council of the People's Republic of China which administers macroeconomic policies and the annu ...
serving as the provider of
export credit insurance, in particular coverage for the export of high-value added goods in China.
History
Sinosure was established in December 2001
by merging the Export Credit Insurance Department of the
People's Insurance Company of China
The People's Insurance Company (Group) of China Limited, known as PICC Group or just PICC, is a Chinese listed insurer. The Chinese Central Government is the controlling shareholder.
The group contains the major subsidiaries: PICC Asset Managem ...
(PICC) and the export credit insurance section of the
China Export and Import Bank. Following China's entry into the
World Trade Organization
The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...
, Sinosure was mandated to support Chinese companies' export and overseas business.
Financing since 2001 has totaled 290 billion dollars' worth of exports and investments, and 570 billion yuan of lending.
In 2009, the company insured 116 billion dollars' worth of exports.
In May 2011, the Chinese government decided to inject 3.1 billion dollars into Sinosure, as part of its effort to improve the commercial viability of financial institutions.
Sinosure was hit hard by a classical example of political risk in 2011, when the
uprising in Libya meant it must pay insurance claims of more than 1 billion dollars by 13
SOEs which had large ongoing investments in the country.
Sinosure is a member of the
Berne Union.
Products
Sinosure is China's policy-oriented insurance company and is a state arm as opposed to a commercial insurer.
Firms borrowing from Chinese banks may purchase insurance from Sinosure.
Sinosure offers coverage against political risks, commercial and credit risks. This includes short-, medium- and long-term export credit insurance, investment insurance, bond and guarantee business, debt and capital retrieval business and credit assessment business. Investment guarantees cover political risks such as currency and remittance restrictions, expropriation and nationalization, sovereign breaches of contract and war.
Sinosure also provides support for export financing. In March 2011, it reached an agreement with
J.P. Morgan
JP may refer to:
Arts and media
* ''JP'' (album), 2001, by American singer Jesse Powell
* ''Jp'' (magazine), an American Jeep magazine
* '' Jönköpings-Posten'', a Swedish newspaper
* Judas Priest, an English heavy metal band
* ''Jurassic Pa ...
to provide a wide array of financial services to exporters, with Sinosure covering J.P. Morgan's exposure.
Sinosure also covers
SMEs (since 2005, even those with export volumes of under 2 million dollars a year) that are unable to bear the
political
Politics () is the set of activities that are associated with decision-making, making decisions in social group, groups, or other forms of power (social and political), power relations among individuals, such as the distribution of Social sta ...
and commercial risks of international trade.
The company also provides coverage for foreign investment by Chinese companies, this time most often by large
SOEs.
As of at least 2019, Sinosure covers hundreds of billions in
trade
Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market.
Traders generally negotiate through a medium of cr ...
yearly, approximately 80% of which is short-term export credit insurance.
See also
*
Dai Chunning, former executive investigated for corruption
*
Policy banks
References
External links
*
{{DEFAULTSORT:China Export and Credit Insurance Corporation
Financial services companies established in 2001
Insurance companies of China
Chinese companies established in 2001
Export credit agencies
Foreign trade of China
Government-owned companies of China
Government-owned insurance companies