The Hong Kong Export Credit Insurance Corporation (HKECIC) has announced the completion of its inaugural “risk-sharing arrangement on domestic sales in the mainland” transaction.
This deal, established in collaboration with The Hongkong and Shanghai Banking Corporation (HSBC), involves the approval of a credit limit for the Hong Kong office of a mainland buyer working with a Hong Kong exporter.
As per a report from The Standard, this development marks a significant step for HKECIC in its efforts to capitalise on the economic progress of China and the Greater Bay Area. It aims to bolster the secure expansion of the mainland market for Hong Kong exporters.
HKECIC commissioner Terence Chiu Man-chung (pictured above) said that the mainland is a key insured market for the corporation, currently holding the largest portion of their credit limit commitments.
This arrangement demonstrates, said the report, that Hong Kong exporters have opportunities to grow their business across various sectors in the mainland by identifying and collaborating with appropriate trading partners, even with a challenging economic climate.
HKECIC, said the report, acknowledged the support from the banking sector in facilitating this deal.
In light of the anticipated increase in payment challenges following the Christmas period, HKECIC is also advising exporters to exercise caution. The report said the corporation recommends closely monitoring credit risks and the payment behaviour of buyers to effectively manage credit risks and safeguard their interests.
Elsewhere in Hong Kong, the Insurance Authority (IA) has imposed a six-year ban on a former insurance agent for the misappropriation and mishandling of premium payments from two policyholders.
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