China urges insurance firms to increase underwriting support for SMEs

The notice said banking institutions should continuously optimise financial services.

China is encouraging insurance companies to increase underwriting support for ‘little giants’ and ‘hidden champions’ firms in their efforts to expand to diversified markets, according to a notice by China's Ministry of Commerce.

‘Little giants’ refer to the novel elites of China's small and medium-sized enterprises (SMEs) that are engaged in manufacturing whilst ‘hidden champions’ refer to highly successful yet lesser-known SMEs that are global leaders in terms of market share.

The notice said banking institutions should continuously optimise financial services for foreign trade enterprises in areas such as credit approval, loan disbursement, and repayment.

Efforts should also be made to optimise cross-border trade settlement, promote cross-border e-commerce development, expand agricultural product exports, and support the imports of key equipment and energy resources.

The country has built 22 pilot free trade zones (FTZs) covering coastal, inland and border areas which contribute about 20% of the country's total foreign investment and import-export volume. Foreign trade in the FTZs expanded by 11.99% year-on-year in the first three quarters of 2024.

China will also drive innovative development in green and border trade, facilitate cross-border business travel, enhance maritime transport support, and strengthen employment services for foreign trade enterprises.