Since the beginning of this year, ICBC has implemented the decision of central government to stabilize the import and export growth, providing strong financial support to foreign trade enterprises in conducting import and export business. In the first quarter, ICBC's domestic branches have financed USD 8.047 billion for international trade, the services including bill purchase, export invoice discount, and package loan. With an increase of 10.33% in its financing balance, ICBC makes the domestic large-scale bank that enjoys the rapidest growth in trade financing this year. Meanwhile, ICBC's international settlement volume has reached USD 180.5 billion in the first quarter, among which its domestic branches have settled payments with a gross value of more than USD 100 billion.

With the spread of international financial crisis, some developed countries have experienced slowdown in economic growth and drop in consumption demands. Under this impact, the Chinese foreign trade enterprises have to face the challenges of a decline of orders, shortage of funds, rapid fluctuations of exchange rate and increase of trade risks. To cope with this situation, ICBC, based on the actual difficulties of the enterprises and the market needs, have promoted financial product innovation and improvement of service quality. These efforts have born meaningful fruit, ICBC said.
　　
First of all, ICBC, relying on its comprehensive advantages in client resources, capital, technology, network and brand reputation, has facilitated financial product and service innovation for international trade, well satisfying the current needs of enterprises for diversification and integration. For example, ICBC introduced the product of "whole process trade manager", which, by integrating the import and export business of foreign trade enterprises, provides effective solution to their problems in business expansion, such as shortage of credit guarantee. Targeting the characteristics of foreign trade enterprises which have low net assets, high debt-to-asset ratio, reliable trading history, adequate goods flow and stable cash flow, ICBC also designed the crediting method which emphasizes sales revenue and operational cash flow. In addition, to meet the needs of small and medium-sized foreign trade enterprises for short-term, frequent and prompt financing, ICBC has optimized its processes of grading, crediting, collateral evaluation and approval, enhancing its efficiency in responding to clients' financial needs.

Secondly, facing that the international financial crisis has increased the collection risk and the exchange rate fluctuation risk, ICBC has tailored a solution plan for its clients in conducting international settlement and trade financing, helping them strengthen risk control and reduce capital cost. For instance, ICBC cooperated with China Export Credit Insurance Corporation currently to launch the trade financing service "Gong-Xin financing manager" in Guangdong -- China Export Credit Insurance Corporation offers insurance service, while ICBC provides financing service for the suppliers. This service can satisfy enterprises' needs for both insurance and financing; moreover, it can effectively avoid bad debts for enterprises' accounts receivable, playing a significant role in helping foreign trade enterprises minimize the negative impact of the international financial crisis, compete for orders, reduce collection risk and accelerate cash flow. In assisting our clients to hedge exchange rate risks, ICBC promoted the financial product for import payment of foreign exchange, which, by combining the services of bill purchase and forward settlement and sale of foreign exchange, decreases the foreign trade enterprises' financing costs and expands their profit margins.

In addition, to help domestic enterprises overcome the financing difficulty in "going out" aggravated by foreign financial institutions' "de-leverage", ICBC, taking advantage of its overseas business network, has strengthened its business connections with domestic and foreign counterparts and, by offering services such as issuing L/G and providing loans for enterprises at abroad while accepting guarantee from their head offices, has well met their needs for overseas financing. In the first quarter, ICBC's letters of guarantee have amounted to USD 0.695 billion, and its business of providing loans to overseas branches while accepting guarantee from their mother companies has reached USD 1.245 billion. Meanwhile, to support Chinese enterprises to participate in international market competition, ICBC also enhanced its export credit facilities. In only one year's time in 2008, ICBC has engaged in eighteen export credit projects, which are mainly in the emerging markets of Asia, Africa and Latin America and amount to USD 0.726 billion.