JP Morgan has signed a landmark agreement with China’s Sinosure to enhance trade finance services for Chinese companies.
Under the agreement, JP Morgan will provide a wide range of trade finance solutions to Chinese exporters, enabling them to enter new markets they previously could not consider and providing financing for their trade finance operations, thereby improving their efficiency and reducing their risk.
Sinosure will provide insurance cover to JP Morgan on export letters of credit (LCs) issued by financial institutions globally in favour 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. This partnership will support the interests of Chinese companies internationally by streamlining their export product processes and structures and enhancing the manufacturing industry’s growth prospects.
The signing of the export credit insurance LC policy agreement was marked by a ceremony in Beijing attended by Dani Cotti, global trade executive, JP Morgan treasury services and Zhou Jian, deputy general manager of Sinosure.
JP Morgan is the first bank headquartered outside Asia to sign such an agreement with Sinosure, and it marks an important milestone for the bank which is this year celebrating its 90th anniversary in China.
JP Morgan’s Cotti comments: “JP Morgan is committed to helping our clients in China grow their business by providing financing for their exports, improving their efficiency, reducing their costs and mitigating their risk. This partnership with Sinosure will give our clients greater certainty when exporting their goods and services around the world as they deepen their global trading relationships.”