China

Atradius Collections, recognizing the growing importance of China, have become the first global collections firm to sign a cooperation agreement with a business partner in China: Flevum-Loenermark in Nanjing.

The People's Bank of China is to allow banks to increase lending this year by 5 percent to 10 percent in excess of their combined initial quota of CNY3.7tn (EUR348.56bn) to help troubled sectors.

Feeling the chill from the US subprime crisis, Chinese exporters such as Zhejiang New Oriental Fastener Company no longer take it for granted that their customers will pay them.

China Merchants Bank released their first quarter reports today, announcing a 38.82 percent rise to US$2.71bn in the trade finance sector.

The tense financial situation is leading to a worrying increase in late payments. Here, Coface gives a summary of their 'Corporate Credit Risk Management in China survey.

Coface, the world's number three credit insurer, owned by French bank Natixis, announced it has begun offering export factoring services in China.

Terms of payment between companies in China are continuing to be extended.

Although many foreign banks have made lending to SMEs a centerpiece of their business strategy in China, companies still struggle to secure bank financing.

Xavier Farcot, deputy regional MD of Coface, Greater China, spoke to a joint ECCT AmCham Greater China Business Committee on results of the company's 2007 Survey of Corporate Risk Management in China.

China has cut foreign banks' medium and long-term foreign debt quotas to fund real estate and energy- intensive projects this year.