Financial reforms benefit import and export businesses
In a bid to support local exporters, the Xiamen municipal government has adopted measures to expand their financial channels.
The Xiamen branch of the People's Bank of China has simplified its approval procedures to allow exporters to apply for loans quickly to cover any capital shortage prior to export tax rebates.
Financial institutions have launched hedge products to protect the real economy from market volatility.
Xiamen Bank is deeply invested in the dynamic economic growth of Fujian province and has put interest-rate swap, foreign-exchange swap and gold forward products on local market.
The municipal government also encouraged financial institutions to provide cross-border RMB settlement services to importers and exporters.
Small and micro exporters will be offered blanket insurance for basic risks. Middle-to-long term credit insurance for export and overseas rental insurance are also available on the market for industrial organizations to adopt.
Authorities in China have recently permitted three additional institutions to offer short-term credit insurance policies to Chinese exporters. The move is expected to establish greater competitiveness in the market.
Why Xiamen
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Xiamen is one of the most economically competitive cities in China and was one of the first Special Economic Zones on the Chinese mainland. As a vice-provincial city independently listed on the State development plan, it has provincial-level authority in economic administration and local legislative power. In 2010, the Xiamen SEZ was expanded to cover the entire municipality. Today, Xiamen is a modern and international port city.