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 (中国信保, Zhōngguó Xìnbǎo)) is a major Chinese
state owned enterprise
A state-owned enterprise (SOE) is a government entity which is established or nationalised by the ''national government'' or ''provincial government'' by an executive order or an act of legislation in order to earn profit for the government ...
(SOE) under the administration of
MFPRC 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 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, as part of China's accession into the
WTO. Financing since 2001 has totaled 290 billion dollars' worth of exports and investments, and 570 billion yuan of lending. In 2009 alone, 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
The Berne Union, also known as The International Union of Credit & Investment Insurers, is an international non-profit association and community for the global export credit and investment insurance industry.
The association provides a forum for ...
.
Products
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 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 (from , ) is the set of activities that are associated with making decisions in groups, or other forms of power relations among individuals, such as the distribution of resources or status. The branch of social science that stud ...
and commercial risks of international trade.
The company also provides coverage for foreign investment by Chinese companies, this time most often by large
SOEs.
See also
*
Dai Chunning, former executive investigated for corruption
References
{{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