Under the agreement, JP Morgan will provide a wide range of trade finance solutions to Chinese exporters, to enable them to enter new markets they previously could not consider, and will assist these enterprises by providing financing for their trade finance operations.
SINOSURE will provide insurance cover to JP Morgan on export Letters of Credit (LCs) issued by financial institutions globally in favor of Chinese companies for a financing tenor of up to two years.
Through the ‘Export Credit Insurance LC Policy Agreement’ with SINOSURE, Chinese enterprises, which previously had to seek financing from banks and insurance services from SINOSURE separately, will now have the convenience of obtaining financing and risk mitigation from JP Morgan, which will in turn obtain insurance cover from SINOSURE.
According to JP Morgan, this partnership will also support the interests of Chinese companies internationally by streamlining their export product processes and structures and enhancing the manufacturing industry’s growth prospects.
JP Morgan Treasury Services global trade executive Daniel Cotti said this partnership with SINOSURE will give clients greater certainty when exporting their goods and services around the world as they deepen their global trading relationships.
