"The impact of the US subprime mortgage crisis continues to spread, and the global economy and trade have entered a new round of credit crisis." Coface Holdings CEO Jerome Cazes commented on global economic development and announced the launch of China's export factoring business. To support the global credit risk of Chinese companies in response to the subprime mortgage crisis.
On June 5th, the founder who initiated the creation of the International Credit Union and the international credit insurance industry, Kaijie accepted an exclusive interview with reporters in Shanghai and described three things to be done in China.
A new round of credit crisis has begun
"In the past 40 years, the global economy and trade have experienced five credit crises. With the outbreak of the US subprime mortgage crisis, a new round of credit crisis has begun." Kaijie said that the global credit risk is the "China trip" The first thing to do.
There are indications that 2008 is a year of high global credit risk, and companies face multiple severe tests: bank credit tightening, slowing consumer demand in developed countries, and rising raw material prices. According to data provided by Coface, the global corporate arrears index rose by 45% in the first four months of this year.
In Kaijie's view, the credit crisis of the financial system is likely to trigger a real economic crisis. To this end, Coface has increased the global credit insurance rate by 10%. In this regard, Kaijie analysis pointed out that Coface will adjust the insurance rate according to the macroeconomic environment. In fact, in the past five years, Coface’s global credit insurance rates have been cut by an average of 7% per year.
He further pointed out that in the past five crises, Chinese companies have not been greatly affected. However, with the reform and opening up of the Chinese economy, many Chinese companies, especially exporting companies, have already felt the international credit risk arising from the US subprime mortgage crisis.
Kaijie told reporters that in the coming months, more Chinese exporters may find that the US subprime mortgage crisis has prevented their foreign partners from paying for their purchases. At the same time, due to fierce competition in the domestic market and overcapacity, the company's billing cycle is being extended. In this context, once the domestic market weakens, it may cause further deterioration in payment status.
“Therefore, Chinese companies should strengthen credit risk management in trade.†Kaijie believes that this round of credit crisis may take 18 months to end. Therefore, the establishment of an enterprise credit risk management mechanism is of great help to companies in solving all problems related to accounts receivable.
Increase investment in China's factoring market
The second thing Kaijie has to do is to launch China's export factoring business.
Export factoring business means that the exporter sells the goods by deferred payment, and immediately sells the invoices, bills of exchange, bills of lading and other relevant documents to the factorer (bank) after the goods are shipped, and collects all or part of the goods to obtain funds. Financing business. Coface's China export factoring business is a non-recourse trade financing service, including credit risk protection, and it also facilitates the management of unexpired invoices.
Kaijie told reporters that China is the 23rd country and region where Coface is providing factoring services. More importantly, China's export factoring market has grown rapidly in the past few years, and its development potential is still huge. Coface data shows that Asia accounts for 35% of global trade, but factoring only accounts for 13%.
“At the moment, we cannot estimate the market share of China's factoring business before the end of the year. However, we hope to provide this business for the trade volume of 8 billion euros (about 85.7 billion yuan) in Greater China in the next five years. â€
It is worth noting that due to the monopoly of China's export credit insurance market, Coface, which has a 25% market share of global commercial export credit insurance, has launched China's domestic trade short-term credit insurance through cooperation with China Ping An Property Insurance Co., Ltd.
In this regard, Kaijie said that Coface's cooperation with Ping An Property & Casualty is a long-term strategy. It not only values ​​Ping An's market management rights, but also hopes to provide receivables guarantee services for Chinese companies through its extensive network. At the same time, Kaijie told reporters that Coface and Ping An are all ready. "Once the regulators release the export credit insurance market, we will immediately enter the market."
According to the latest data, as of the first quarter of this year, with the support of Coface, Ping An Property Insurance has accumulated insurance support for more than 100 billion yuan of book sales.
Launch new credit rating service
In addition to providing credit insurance and factoring services, Coface is also the premier corporate credit information provider and the world's third largest product marketing information provider. Yesterday, Coface announced that it will take the lead in piloting credit rating business in China and Japan. This is the third thing Kaijie has done in Shanghai.
Compared with Standard & Poor's and Moody's ratings, Coface's rating business has a lower fee and can keep the rating process and results confidential according to company requirements. Kaijie told reporters that at present, Coface has a credit tracking of more than 50 million companies in China and has a more complete corporate credit record.
In addition, based on the common risk system data, Coface combines other authoritative macroeconomic indicators to produce and regularly (quarterly) update the World Trade Credit Risk Assessment, which is the world's major industry in more than 150 countries and regions. The department conducts credit risk ratings, reflecting changes in the average level of trade arrears in various countries.
In early April this year, Coface lowered the US national trade risk rating. According to Kaijie, since January this year, the number of cases of default in North America has risen significantly, not only from real estate directly related industries, but also related to other industries. This is the main reason why Coface revised the US national trade risk rating.
"Although the Chinese economy faces more difficulties, such as increased pressure on the appreciation of the renminbi and increased inflationary pressures, there has not been a significant increase in the number of Chinese companies owing money. Therefore, Coface will not adjust China's national trade risk rating for the time being." Kaijie said . It is understood that at the end of May, Coface has just lowered the risk rating of seven industry sectors including air transport, engineering and construction, automotive, paper, retail, electronic parts and textiles.
On June 5th, the founder who initiated the creation of the International Credit Union and the international credit insurance industry, Kaijie accepted an exclusive interview with reporters in Shanghai and described three things to be done in China.
A new round of credit crisis has begun
"In the past 40 years, the global economy and trade have experienced five credit crises. With the outbreak of the US subprime mortgage crisis, a new round of credit crisis has begun." Kaijie said that the global credit risk is the "China trip" The first thing to do.
There are indications that 2008 is a year of high global credit risk, and companies face multiple severe tests: bank credit tightening, slowing consumer demand in developed countries, and rising raw material prices. According to data provided by Coface, the global corporate arrears index rose by 45% in the first four months of this year.
In Kaijie's view, the credit crisis of the financial system is likely to trigger a real economic crisis. To this end, Coface has increased the global credit insurance rate by 10%. In this regard, Kaijie analysis pointed out that Coface will adjust the insurance rate according to the macroeconomic environment. In fact, in the past five years, Coface’s global credit insurance rates have been cut by an average of 7% per year.
He further pointed out that in the past five crises, Chinese companies have not been greatly affected. However, with the reform and opening up of the Chinese economy, many Chinese companies, especially exporting companies, have already felt the international credit risk arising from the US subprime mortgage crisis.
Kaijie told reporters that in the coming months, more Chinese exporters may find that the US subprime mortgage crisis has prevented their foreign partners from paying for their purchases. At the same time, due to fierce competition in the domestic market and overcapacity, the company's billing cycle is being extended. In this context, once the domestic market weakens, it may cause further deterioration in payment status.
“Therefore, Chinese companies should strengthen credit risk management in trade.†Kaijie believes that this round of credit crisis may take 18 months to end. Therefore, the establishment of an enterprise credit risk management mechanism is of great help to companies in solving all problems related to accounts receivable.
Increase investment in China's factoring market
The second thing Kaijie has to do is to launch China's export factoring business.
Export factoring business means that the exporter sells the goods by deferred payment, and immediately sells the invoices, bills of exchange, bills of lading and other relevant documents to the factorer (bank) after the goods are shipped, and collects all or part of the goods to obtain funds. Financing business. Coface's China export factoring business is a non-recourse trade financing service, including credit risk protection, and it also facilitates the management of unexpired invoices.
Kaijie told reporters that China is the 23rd country and region where Coface is providing factoring services. More importantly, China's export factoring market has grown rapidly in the past few years, and its development potential is still huge. Coface data shows that Asia accounts for 35% of global trade, but factoring only accounts for 13%.
“At the moment, we cannot estimate the market share of China's factoring business before the end of the year. However, we hope to provide this business for the trade volume of 8 billion euros (about 85.7 billion yuan) in Greater China in the next five years. â€
It is worth noting that due to the monopoly of China's export credit insurance market, Coface, which has a 25% market share of global commercial export credit insurance, has launched China's domestic trade short-term credit insurance through cooperation with China Ping An Property Insurance Co., Ltd.
In this regard, Kaijie said that Coface's cooperation with Ping An Property & Casualty is a long-term strategy. It not only values ​​Ping An's market management rights, but also hopes to provide receivables guarantee services for Chinese companies through its extensive network. At the same time, Kaijie told reporters that Coface and Ping An are all ready. "Once the regulators release the export credit insurance market, we will immediately enter the market."
According to the latest data, as of the first quarter of this year, with the support of Coface, Ping An Property Insurance has accumulated insurance support for more than 100 billion yuan of book sales.
Launch new credit rating service
In addition to providing credit insurance and factoring services, Coface is also the premier corporate credit information provider and the world's third largest product marketing information provider. Yesterday, Coface announced that it will take the lead in piloting credit rating business in China and Japan. This is the third thing Kaijie has done in Shanghai.
Compared with Standard & Poor's and Moody's ratings, Coface's rating business has a lower fee and can keep the rating process and results confidential according to company requirements. Kaijie told reporters that at present, Coface has a credit tracking of more than 50 million companies in China and has a more complete corporate credit record.
In addition, based on the common risk system data, Coface combines other authoritative macroeconomic indicators to produce and regularly (quarterly) update the World Trade Credit Risk Assessment, which is the world's major industry in more than 150 countries and regions. The department conducts credit risk ratings, reflecting changes in the average level of trade arrears in various countries.
In early April this year, Coface lowered the US national trade risk rating. According to Kaijie, since January this year, the number of cases of default in North America has risen significantly, not only from real estate directly related industries, but also related to other industries. This is the main reason why Coface revised the US national trade risk rating.
"Although the Chinese economy faces more difficulties, such as increased pressure on the appreciation of the renminbi and increased inflationary pressures, there has not been a significant increase in the number of Chinese companies owing money. Therefore, Coface will not adjust China's national trade risk rating for the time being." Kaijie said . It is understood that at the end of May, Coface has just lowered the risk rating of seven industry sectors including air transport, engineering and construction, automotive, paper, retail, electronic parts and textiles.
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