Joint Development through Financial Cooperation, Foreign Trade Financing Special Conference to Support Used Car Export Enterprises

Secretariat, Henan Province Used Car Circulation Association, December 05, 2024, 18:21 Henan

On the morning of December 5, 2024, a special conference on foreign trade financing with the theme "Banking and Trade Join Hands to Boost Foreign Trade" was held in Meeting Room 401 on the fourth floor of the Henan Provincial Department of Commerce.

The conference aimed to strengthen communication and collaboration between foreign trade enterprises and banks, promote the effective implementation of foreign trade financing services, address the financing challenges faced by foreign trade enterprises, and further promote the stable development of the foreign trade industry. Attending the conference were leaders including Cheng Yong'an, Director of the Foreign Trade Department of the Henan Provincial Department of Commerce, Yue Jingzhao, Deputy Director of the Second Research Office, Section Chief Niu Zhengzheng, and Jin Yuqing, Secretary-General Yin Liuliu and Deputy Secretary-General Zhou Yanyong of the Henan Province Used Car Circulation Association, Yuan Jingming, President of the Used Car Export Committee and General Manager of Henan Dongdong, and representatives from various vice-presidential units of the Used Car Export Committee, as well as more than 50 other responsible persons from Zhengde Yuhua, Changyuan Dongxing, Sanmenxia Qihang, Hanhai Youche, Desa, Qian Yi, Industrial and Commercial Bank, Everbright Bank, Bank of China, Central China Bank, Bank of Communications, CITIC Bank, China Construction Bank, and other related banks.

The conference began with Yue Jingzhao, Deputy Director of the Second Research Office of the Foreign Trade Department, providing a detailed introduction to the background, purpose, and attendees of the conference. He stated that Henan Province's used car export business has achieved significant results. By the end of November 2024, Henan Province's used car exports reached 14,000 units with a total export value of $280 million, successfully opening doors to 89 countries worldwide, gaining increasing recognition and favor in the international market. However, with the continuous development of the used car export industry, foreign trade enterprises face many challenges in terms of funding, which has become a bottleneck for further enterprise development. This conference was specifically designed to build a platform for bank-enterprise communication to explore solutions together.

Following that, the attending representatives from major banks spoke in turn, introducing their respective preferential policies in the international business of used car exports. The content covered key elements such as loan amount ranges, interest rate levels, loan terms, repayment methods, collateral requirements, and approval processes, presenting to the enterprises the strong measures and distinctive advantages of each bank in supporting used car export enterprises.

During the interactive exchange session, representatives from Henan Dongdong and Sanmenxia Qihang spoke as enterprise representatives. They expressed that banks still lack sufficient understanding of the used car export industry. The used car export industry, especially in Henan, began to develop on a large scale after 2022. The rapid development of the industry has led to insufficient understanding and recognition from banks, resulting in obstacles for used car export enterprises during credit approval. Used car export enterprises should communicate more with banks and learn from each other. Secondly, there is a lack of credit enhancement measures for used car export enterprises. The used car export belongs to a light asset, high turnover, and liquidity industry. Enterprises do not have a large amount of fixed assets as credit enhancement measures, and enterprises encounter obstacles when financing. At the same time, the existing bank products cannot match the needs of new enterprises within the industry. As an emerging and rapidly growing industry, the duration of enterprise operations within the industry cannot meet the credit approval requirements of traditional foreign trade industries set by banks. Banks can consider relaxing approval conditions according to the characteristics of the industry to meet the funding needs of used car export enterprises and support the development of the used car industry in Henan Province.

In response to the demands of enterprises, the Henan Provincial Department of Commerce actively plays a coordinating and guiding role. Cheng Yong'an, Director of the Foreign Trade Department, emphasized clear expectations and requirements to the attending bank representatives. Director Cheng stressed that the implementation of inclusive financial policies is fundamental, but on this basis, banks should fully leverage their financial innovation capabilities, deeply integrate the characteristics of the used car export industry and the actual operational situation of enterprises, develop more targeted and innovative products, effectively increase the foreign trade loan amount, provide foreign trade enterprises with adequate and suitable financial support, and help enterprises overcome the current funding difficulties.

 

At the end of the conference, Yue Jingzhao, Deputy Director of the Second Research Office of the Foreign Trade Department, expressed his hope that banks can take this conference as an opportunity to establish a closer cooperative relationship with foreign trade enterprises, truly bring policies and services to the front line of enterprises, and make foreign trade loans a powerful "east wind" to help enterprises set sail and go global, jointly promoting the competitiveness of Henan Province's used car export industry and the entire foreign trade industry in the global market, achieving high-quality and sustainable development.