The growth rate of orders has slowed down, freight costs are high, and financial pressure is obvious... Since the beginning of this year, affected by multiple factors such as the epidemic and changes in the international situation, the development of my country's foreign trade co

The growth rate of orders has slowed down, freight costs are high, and financial pressure is obvious... Since the beginning of this year, affected by multiple factors such as the epidemic and changes in the international situation, the development of my country's foreign trade companies has faced severe challenges. How to help foreign trade companies stabilize orders and production? Financial institutions are actively optimizing products and services and making every effort to help foreign trade companies tide over difficulties.

"Government, bank and insurance" work together to ease financial pressure on enterprises

Under multiple pressures, in the first four months, my country's total import and export value increased by 7.9% year-on-year, showing strong resilience. However, the growth rate in April was only 0.1%, reflecting that foreign trade companies are still facing greater pressure. Many foreign trade business owners reported to reporters the current shortage of funds they are facing.

"Recently, shipping schedules have been unstable and port congestion has become an issue. Many goods have been floating at sea for a long time, making it difficult to withdraw funds in a timely manner. Thanks to the support of a 30 million yuan export credit insurance financing line from China CITIC Bank, we will not have to purchase in-season purchases from farmers." Fruits are in short supply," Li Zhenglun, chairman of Qugu Food Co., Ltd. in Zigui County, Hubei Province, told reporters that the deep-processed citrus products produced by the company have been exported abroad all year round. In the past two months, export orders have grown steadily but they once encountered financial pressure.

For foreign trade companies, export credit insurance plays a prominent role in credit enhancement. The recently held executive meeting of the State Council proposed expanding the scale of short-term export credit insurance and shortening the compensation time. Increase credit insurance policy financing.

From January to April this year, the number of small, medium and micro enterprises served by China Export and Credit Insurance Corporation reached 124,000, a year-on-year increase of 5.5%; the insured amount was US$67.35 billion, an increase of 14.3%.

At the same time, various localities have actively introduced measures to play the credit-enhancing role of insurance policy financing: Jiangsu supports qualified localities to provide financing support to small and micro foreign trade companies through "reloan + policy financing" and other methods, and Fujian appropriately relaxes pre-export insurance for foreign trade companies affected by the epidemic. Underwriting conditions, Guangdong actively implements special policies to promote export credit insurance for "small and micro enterprises"...

"Under the financing model of 'government-bank-insurance' cooperation, banks do not need other mortgages and only use enterprises' overseas accounts receivable as The repayment guarantee increases the availability of financing for foreign trade companies," said Xie Aihua, head of the International Business Department of China CITIC Bank Wuhan Branch.

The picture shows workers at a clothing company producing clothing for export overseas in Taihe County, Fuyang City, Anhui Province on May 26. Xinhua News Agency issued

Fully online, pure credit to facilitate corporate financing

As a small foreign trade company mainly engaged in the export of daily necessities, Guangdong Jiangmen Hongxu Import and Export Co., Ltd. has been put to the test recently: shipping prices have increased year-on-year, foreign trade orders The growth rate has slowed down year-on-year, and the company's development is facing a funding gap...

"Under the dual pressure of delays in payment collection from foreign customers and domestic supply companies' proposals to shorten the account period, the company's capital turnover pressure has increased significantly." General Manager of the company Lin Jinquan told reporters that the company had difficulties in financing due to lack of collateral. It was not until it obtained a 2 million yuan credit loan from China Construction Bank that the daily operating pressure was relieved.

Small and micro foreign trade enterprises need special credit products with small amounts, multiple frequencies, and fast disbursement based on their own business characteristics. To this end, many financial institutions have launched unsecured, pure credit, and fully online credit products based on data such as customs declarations, tax bills, and customs credit ratings to facilitate financing for foreign trade companies. As of the end of May, more than 10,000 small and micro foreign trade companies had obtained credit funds exceeding 20 billion yuan through China Construction Bank’s “cross-border quick loan”.

"The one-year loan cycle is too short for us. We have to start arranging loan repayment funds after 10 months of use, and it is difficult to achieve a seamless connection." The person in charge of a foreign trade company on the eastern coast hopes that bank loans will have better terms and repayment methods. It is more flexible and can continue to meet the medium and long-term capital needs of enterprises.

The People's Bank of China has recently put forward a series of requirements for financial services to small and micro enterprises, accelerating the formation of a long-term mechanism that dares to lend, is willing to lend, is able to lend, and will lend. Experts said that at present, some small and micro foreign trade enterprises are still suffering from difficult and expensive financing, and there is an urgent need for financial institutions to innovate credit products, set loan terms reasonably, enrich the supply of medium and long-term loan products, and help enterprises survive the crisis while taking a long-term view.

The picture shows workers on the production line of an aquatic products processing company in Shishi, Quanzhou, rushing to make canned food orders for export to Southeast Asia (photo taken on May 13). Photo by Xinhua News Agency reporter Wei Peiquan

Banks help companies grab orders and expand markets

Affected by unexpected factors such as the epidemic and changes in the international situation, my country's foreign trade supply and demand have declined simultaneously. my country's manufacturing new export orders index fell to 41.6% in April and rose to 46.2% in May. Grasping orders and expanding markets are still very important for foreign trade companies.

A few days ago, Anji Xusheng New Materials Technology Co., Ltd., Huzhou City, Zhejiang Province, and more than a dozen domestic photovoltaic manufacturers participated in the International Renewable Energy Photovoltaic Industry Expo held in Warsaw, Poland, as an "entrusted exhibitor". The local staff who actively help companies display samples and provide promotional materials are all from China Construction Bank Warsaw Branch. With the help of CCB’s cross-border intelligent matching platform, more than 1,000 companies have achieved “cloud exhibition participation” since this year.

"A few days after participating in the exhibition, two Polish companies expressed their intention to purchase products to us, which made us very excited." Jia Xiang, general manager of the company, told reporters that at the end of last year, the company had two orders worth millions of dollars. Due to the breach of contract by the other party, foreign trade orders have fallen by 40% year-on-year this year. Expanding new orders and new markets is of great significance for companies to tide over the difficulties.

Zhao Ping, deputy director of the China Council for the Promotion of International Trade Research Institute, said that the current urgent need for foreign trade companies is to expand the market and grab orders. Participating in exhibitions is currently the main way for foreign trade companies to obtain new orders, and innovating foreign trade business is also an effective means to increase new orders.

Recently, the "Opinions on Promoting the Stability and Improving the Quality of Foreign Trade" issued by the General Office of the State Council clearly proposed to optimize and innovate online exhibition models and support small, medium and micro enterprises through "domestic online face-to-face talks, overseas offline product exhibitions" and other methods Participate in overseas exhibitions to encourage companies to make good use of online channels to expand trade transactions.

Shipping capacity is tight, energy prices are rising, and bottlenecks in the global supply chain have not yet been alleviated... At present, foreign trade companies are still facing multiple difficulties. They need all localities and relevant departments to implement the measures that have been introduced to stabilize foreign trade, and at the same time innovate measures and make precise efforts. Help foreign trade companies tide over difficulties and play an important role in stabilizing the economy and promoting development.

Source: Xinhua News Agency