China's Export & Credit Insurance Corporation (Sinosure) and JP Morgan have signed an agreement under which insurance should be easier to obtain for Chinese companies requiring letters of credit (L/Cs).

JP Morgan claims the agreement will enhance the services it already offers to Chinese exporters of goods and services.

Integrated service

The Export Credit Insurance L/C Policy Agreement backed by Sinosure will be available direct from JP Morgan.

Up until now, Chinese enterprises have had to seek financing from banks and insurance services from Sinosure separately.

New agreement

Sinosure will provide insurance cover on export L/Cs issued by financial institutions globally in favour of Chinese companies for a financing tenor of up to two years.

Under the new agreement, JP Morgan rather than the L/C customer will be responsible for obtaining insurance cover from Sinsosure.

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