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ICBC’s “Chunrong Action” Facilitates New Development Pattern

Since the beginning of this year, ICBC has seriously implemented the requirements of “ensuring stability on the six fronts and security in the six areas” by carrying out “Chunrong Action”. With its focus on the financial needs of key foreign trade, foreign-funded enterprises and their upstream and downstream corporations, ICBC makes every effort to ensure the smooth operations of the foreign trade industry chain and supply chain, so as to facilitate the formation of a new development pattern that takes the domestic market as the mainstay while letting domestic and foreign markets boost each other. As of the end of September, ICBC had provided key foreign trade and foreign-funded enterprises with over RMB470 billion of financing in local and foreign currency, strongly assisting them in stabilizing production and markets.

In the face of the COVID-19’s devastating impact on global industrial chain and supply chain, ICBC signed a Memorandum of Cooperation on Stabilizing Foreign Trade and Foreign Investment with the Ministry of Commerce, providing a package of comprehensive solutions to jointly promote the stability of the foreign trade, foreign investment and industrial chains. On April 16, ICBC officially launched its “Chunrong Action” to meet the cross-border settlement and financing needs from contract signing to production and sales during import and export trades, by allocating special financing facilities and offering preferential interest rates and rate cut. To meet the needs of enterprises’ daily operations, ICBC provides working capital loans, project loans, and key international trade finance and settlement products, including export invoice financing, export order financing, trade finance under short-term export credit insurance, international factoring, ICBC Express, etc., to specially help key foreign trade and foreign-funded enterprises, as well as the enterprises temporarily experiencing operational difficulties due to the COVID-19 pandemic.

Meanwhile, ICBC also innovates its business model to adapt to the local business environment. The bank actively cooperates with local commercial authorities in designing and promoting localized products to meet diversified market needs. In Zhejiang, as the first batch of pilot banks, ICBC launched the first characteristic financing product “Hang Credit Loan” in the Province to provide pure credit and collateral-free trade finance services for foreign trade enterprises by introducing such guarantors as China Export & Credit Insurance Corporation. In Jiangsu, ICBC, relying on the special fund on financing risks set up by the government, promoted the financing product “Su Trade Loan” to support small and medium-sized foreign trade enterprises, adding their access to financing channels and cutting their financing costs by means of credit enhancement, credit insurance, risk compensation etc., in connection with the local Department of Commerce and Department of Finance. In Shanghai, ICBC, together with Shanghai Municipal Commission of Commerce and China Export & Credit Insurance Corporation, launched “Easy Insurance & Guarantee” integrating “Credit Insurance + Banking + Guarantee”, to provide small and medium-sized foreign trade enterprises with exclusive online financing and settlement products, and offer preferential interest rates and rate cut to meet their cross-border financial needs.