China Exim Bank
China Exim Bank, or Export-Import Bank of China (CEB), is the export credit agency of the Chinese government, founded in 1994. It is a policy-based financial institution with the mission of supporting Chinese trade and investment. The Bank provides loans, guarantees, bond issuance, leasing services and other services to Chinese companies for their foreign investments, sales and procurement of goods and services.
CEB is considered a Development Financial Institution (DFI) by the International Monetary Fund and works closely with the World Bank, Asian Development Bank and other key international financial institutions in relation to China’s development priorities. The Bank’s primary mission has been to bring financing to projects which broadening the economic reach of China and promoting win-win economic cooperation between countries.
CEB put China in a better position to implement its economic development objectives as well as to increase foreign direct investment into China. CEB offers a wide range of services to its clients, such as export credit, insurance, investment consulting services, risk analysis, financial planning and project financing.
The bank provides financing for exporters who are dealing with the risk of nonpayment and carries the credit risk for Chinese exporters, which necessitates a different financing model from commercial banks. CEB has a variety of financing resources available to support its mission, including deposits from Chinese state-owned enterprises and capital market funds.
The Bank has emerged as an important financial institution in helping China to counter the longstanding risk of foreign exchange issues and help governments navigate currency war concerns. CEB has helped to reduce the volatility of economic cycle and provide much-needed capital in a number of developing countries.
In addition, the Bank has opened up short term credit lines for Chinese companies to fund initiatives such as infrastructure, urban irrigation and public health projects. As a result, Chinese companies have seen increased opportunities for projects that generate a strong return on investment.
Overall, CEB is playing an increasingly important role in China’s international trade and investment growth. With its extensive experience working with both the public and private sectors, CEB is well-positioned to continue to partner with the international financial community and help bring foreign investment into the Chinese economy.
