Foreign trade imports and exports are an important engine driving economic growth. Since this year, China CITIC Bank has taken many measures and put forward practical measures to join hands with various parties to support the development of foreign trade enterprises by increasing credit investment, actively providing cross-border financial products, and exchange rate safe-haven instruments.
In Anhui, Chuzhou Hanshang Electric is a private enterprise integrating R&D and overseas sales of home appliances, with an annual export volume of nearly 100 million US dollars. As the export situation of China's electricity industry improves, corporate financing needs have increased, and they are facing a certain amount of account pressure. However, enterprises have limited assets and are difficult to implement traditional methods of collateral and credit enhancement. At the same time, customers pay less in a single transaction, many and scattered buyers, and cumbersome trade financing operations, increasing corporate financing costs.
The Hefei branch of China CITIC Bank promptly lent a helping hand and cooperated with China Export Credit Insurance Company to propose a credit insurance financing solution for customers. After the enterprise applied for China's export credit insurance, China CITIC Bank provided it with a financing line of 30 million yuan and completed the financing acceptance and review business process through the “Export Credit Insurance Policy Financing” application scenario of the State Administration of Foreign Exchange's cross-border financial service platform. As of April 2023, it has lent nearly 3 million US dollars to customers, solving the problems of difficult corporate financing and complicated procedures, and providing financial support for the enterprise to expand exports.
In Shandong, the Jinan branch of China CITIC Bank handled 1 million yuan of forward foreign exchange transactions for Jinan Raffley and Retec Refrigeration Parts Co., Ltd. respectively. It only took 1 week from credit approval to business implementation.
Jinan Raffrey Hertec Refrigeration Parts Co., Ltd. mainly engages in the export business of refrigeration parts. The products are exported to more than a dozen countries and regions including Turkey, Russia, and Southeast Asia, accounting for 95% of total revenue. In the course of customer research, China CITIC Bank discovered that enterprises are highly sensitive to exchange rate fluctuations and have foreign exchange derivatives business needs. It immediately formed a joint team to provide enterprises with personalized service plans such as presenting foreign exchange derivatives business, setting up foreign exchange salons, and establishing WeChat service groups for international business. In the end, China CITIC Bank's special credit grant for foreign exchange derivatives effectively solved the problem of high capital costs caused by small and medium-sized enterprises processing foreign exchange derivatives deposit security deposits.
The above cases are just a few microcosms of China CITIC Bank working with various parties to help enterprises “go global.” In March of this year, the All-China Federation of Industry and Commerce and China CITIC Bank jointly hosted a launch conference for a series of activities to help private enterprises “go global” and release the “Work Plan to Support Private Enterprises to “Go Global” and help jointly build “Belt and Road” high-quality development. According to the plan, the two sides will implement the real economy requirements for financial services, give full play to the advantages of China CITIC Bank's comprehensive financial services, and continue to increase financial support for private enterprises to “go global”, including but not limited to providing cross-border financial products and services, fund management services, online foreign exchange trading products and cross-border RMB services, supply chain financial services, etc. for “going global” private entity enterprises; the plan also proposes to increase support for micro, small and medium-sized private enterprises, using the “Credit Protection Connect” of China Credit Insurance, the “Single Window” of the Customs Service Bureau and other “cross-border financial platforms” Multiple digital platforms Verify the authenticity of the trade background and efficiently meet the export financing needs of micro, small and medium-sized enterprises. In June of this year, China CITIC Bank and China Export Credit Insurance Corporation jointly issued the “Joint Action Declaration on Digital Services to Support Micro, Small and Medium Foreign Trade Enterprises”, which includes the five themes of digital leadership, digital innovation, digital control, digital services and digital empowerment, effectively integrating the products and services of both parties in the field of digital inclusive finance. They are committed to solving corporate financing problems, improving corporate financing facilities, and carrying out joint enterprise services through the construction of an intelligent risk system.
China CITIC Bank has always adhered to an international vision, implemented national policies based on serving the real economy, and relied on CITIC Financial Control to provide enterprises with full-scenario and full-life cycle solutions from various fields such as commercial banks, brokerage firms, investment banks, trusts, insurance, carbon trading, futures, etc., and is a strong practitioner of the dual cycle economy. Throughout 2022, China CITIC Bank achieved a cumulative total of more than 400 billion US dollars in balance of payments and 200 billion US dollars in valet settlement volume, ranking leading the joint stock bank. In the same period, China CITIC Bank's cross-border e-commerce financial service platform achieved export settlement of US$15.15 billion for 62,000 small and medium-sized foreign trade customers, continuing to lead the joint stock bank in the field of “stabilizing foreign trade” services.
In the future, China CITIC Bank will continue to help the development of the private economy, firmly serve the national strategy and the main line of the real economy, continue to explore new models and paths of using finance to help regional economic construction, continue to build the “CITIC Big Foreign Exchange - Global Value Chain” service system, continuously improve customer experience, and strive to become the best foreign exchange business solution provider and ideal cross-border financial service partner for customers.