1. Many banks have actively taken action regarding 'stabilizing foreign investment and foreign trade'. From state-owned major banks to local city commercial banks, several banks are leveraging their own advantages to provide support for foreign trade enterprises from multiple aspects; 2. Banks in major coastal provinces with substantial foreign trade have recently received relevant requests to not withdraw loans or stop lending to local foreign trade enterprises.
According to a report from Caixin News on April 21 (reporters Peng Kefeng and Guo Zishu), a recent State Council executive meeting focused on stabilizing employment and the economy. The meeting pointed out that it is necessary to stabilize the development of foreign trade and foreign investment and to increase support intensity with tailored strategies for each industry and each enterprise.
In recent days, Caixin News reporters have conducted extensive research and found that many banks are actively taking action regarding 'stabilizing foreign investment and foreign trade'. From state-owned major banks to local city commercial banks, several banks are leveraging their own advantages to provide support for foreign trade enterprises from multiple aspects.
This afternoon, relevant personnel from China Everbright Bank introduced to Caixin News reporters that the bank has established a 'Foreign Trade Working Group' under the 'Coordination Mechanism for Supporting Financing of Small and Micro Enterprises' to specifically promote financial services for foreign trade enterprises. Recently, major state-owned banks like Bank Of China and Industrial And Commercial Bank Of China have also taken measures to focus on foreign trade and foreign investment.
Additionally, according to Caixin News reporters, banks in major coastal provinces with significant foreign trade have recently received requests to not withdraw loans or stop lending to foreign trade enterprises.
'Our bank places great importance on stabilizing foreign trade operations, and relevant departments are communicating and guiding us.' On April 21, a representative from a city commercial bank in the southeastern coastal region told Caixin News reporters that the bank is actively responding to the spirit of the relevant departments by implementing a policy of 'not withdrawing loans and not stopping loans' for foreign trade enterprises while also providing customized credit support plans for leading foreign trade enterprises, adhering to 'one enterprise, one policy' and ensuring high-quality financial services.
National banks have established foreign trade working groups to specifically promote relevant businesses.
This afternoon, a relevant person from China Everbright Bank introduced to the Financial Alliance reporters that recently, to further strengthen support for small and medium-sized foreign trade enterprises, both the head office and branches of China Everbright Bank have established "Foreign Trade Working Groups" to specifically promote financial services for foreign trade enterprises.
The reporter from the Financial Association noticed that, from the public information, this is also the first national commercial bank that explicitly states the establishment of an "external trade working group". Today, representatives from two other national commercial banks informed the Financial Association reporter that their banks have not yet taken any latest actions regarding the establishment of a special task force or increased loan support.
Currently, under the "external trade working group" mechanism, CEB BANK has already implemented related typical cases in the Guangdong market. A technology company based in Zhongshan City, Guangdong Province, specializes in Asia Vets display equipment and expects to export over 0.1 billion USD in 2024. Recently, the Global trade situation has been complex and changing, with intensified exchange rate fluctuations. Since the company's payment receipts are mostly settled in USD, this has caused difficulties for the company's operation. CEB BANK's Guangzhou branch learned about this technology company's demand for exchange rate hedging and innovatively designed a "risk reversal option forward foreign exchange purchase structure" service plan, and established a special credit limit for the company.
Relevant personnel from CEB BANK introduced to the Financial Association reporter that the bank is taking multiple measures to support external trade stabilization and breakthroughs by intensifying credit support, optimizing product service quality, and more. Currently, CEB BANK's Changsha branch is providing financing services for exporting companies through the design of the "export credit insurance + export financing" product, while the Nam Cheong branch is relying on export credit insurance to enhance confidence for financing export orders, and the Xi'an branch has implemented the inclusive foreign trade micro-enterprise conversion loan.
在国有大行层面，近期也有不少动作聚焦外贸外资。近日在广交会期间，中国银行广东省分行发布《支持外贸稳定增长行动方案》，宣布中国银行将向广东外贸企业提供超过180 billion元贸易融资、中长期贷款、跨境融资等表内外、本外币综合金融服务，为广东企业提供不少于1 trillion元的跨境人民币结算服务支持。
"Universe Bank" Industrial And Commercial Bank Of China also has actions. On April 18, the Industrial And Commercial Bank Of China held a global treasury brand launch and multinational comprehensive financial services promotion conference in Beijing, announcing that it will provide more global financial services for foreign invested trade enterprises.
Relevant personnel from the Industrial And Commercial Bank Of China introduced to the Financial Association reporter that the bank will rely on its global network advantages and financial technology strengths to focus on the demands of corporate account management, payment settlement, fund allocation, and risk control, to provide comprehensive financial services for foreign enterprises operating in China and domestic enterprises expanding overseas.
Banks in the southeastern coastal provinces have received notifications to maintain "no loan withdrawal, no loan interruption" for foreign trade enterprises.
It is noteworthy that, in addition to state-owned large banks and joint-stock banks, some local banks in major foreign trade provinces are also taking active actions to increase support for foreign trade enterprises through investigation and credit.
Recently, the Bank of Suzhou announced that after the USA released its tariff policy, the Bank of Suzhou quickly organized relevant departments for analysis, implemented local government policy deployments, and rapidly established a special task force led by the bank's leaders. This team strengthens cooperation with government departments and industry associations, prepares strategies, provides recommendations, and fully cooperates to respond. "By leveraging the government risk-sharing mechanism, jointly launching financial products with policy banks such as the Export-Import Bank to provide efficient and low-interest financing for foreign trade enterprises."
According to reports from Caixin, several banks in southeast coastal provinces have recently received relevant requests to ensure that foreign trade enterprises in their jurisdictions are not facing loan withdrawals or interruptions in loans.
A local joint-stock bank representative confirmed to Caixin that the bank's international business department is implementing the relevant requirements. Another city commercial bank representative stated that the bank is actively responding to the spirit of relevant departments by adopting a "no loan withdrawals, no interruptions in loans" approach for foreign trade enterprises. At the same time, they are implementing customized credit support plans for leading foreign trade enterprises, adhering to a "one enterprise, one policy" approach to provide quality financial services. "From what we understand, relevant departments within the province place great importance on credit support, and if any bank has withdrawn loans from foreign trade enterprises recently, it should be corrected promptly after April."
"Despite facing tariff pressures, the globalization of foreign trade enterprises remains an inevitable trend. In Southeast Asia and along the Belt and Road Initiative Concept regions, our country's foreign trade enterprises still have broad market space and require more support from banks in financial settlement, Exchange Rates hedging, and comprehensive Crediting aspects," said a macro Analyst from a brokerage to Caixin.
