Everlight (Suzhou) Advanced Chemical Ltd, a company in China (Jiangsu) Pilot Free Trade Zone Suzhou Area in SIP, received a digital fund of more than RMB 3 million from the SIP branch of the Bank of China on Aug 3, becoming the first company in the FTZ to raise a digital RMB fund based on an export credit insurance (ECI) policy.
In China, banks are allowed to grant loans to exporters that have bought an ECI policy from China Export & Credit Insurance Corporation (SINOSURE). The digital RMB financing marks a breakthrough in this service, not only allowing the borrower to receive and use the money more swiftly, but also opening a new channel for enterprises to raise money.
It is learnt that SINOSURE’s Suzhou Office and several banks in the FTZ are working on a series of measures to enhance financial support for foreign trade enterprises, and the new mode of financing is expected to become a popular financing instrument.
August 5, 2022
