The business is divided into two parts: one is "internal insurance" and the other is "external loan". "Internal insurance" means that domestic enterprises apply to the domestic branch of Bank of Communications for issuing a letter of guarantee, and the domestic branch of Bank of Communications issues a financing letter of guarantee to the offshore center; "Foreign loan" means that the offshore center issues loans to overseas enterprises according to the letter of guarantee received. Regarding this business, suppose that our domestic company, Company A, and one of your overseas subsidiaries is Company B. Because of its own operation, for example, it needs a trade financing line to participate in international trade competition or a working capital loan for enterprise turnover, it urgently needs bank credit support. However, because Company B has been established overseas for a short time, or overseas banks have "scale" requirements for Company B, it is difficult to obtain overseas credit in a short time. Company A has a good cooperation with the domestic branch of Bank of Communications and has credit support. In this context, how to solve the problems encountered? At this time, through the "internal insurance and external loan" business of Bank of Communications, we can solve the difficulties and needs encountered by everyone. Domestic enterprises apply to the domestic branch of Bank of Communications to open a financing guarantee, and then the domestic branch of Bank of Communications issues a guarantee to the offshore center, and the offshore center provides credit to overseas companies to meet customer needs. As I said just now, it involves four parties. The guarantor refers to the domestic branch of Bank of Communications, and the guarantor is an overseas enterprise. The beneficiary refers to the institution that provides credit, that is, our offshore center. The counter-guarantor is the domestic parent company of the guarantor, or an enterprise or institution with other guarantee qualifications. What I need to emphasize here is that overseas borrowers-overseas enterprises in domestic insurance and foreign loan business-must have a legal person background in China. Let me give you an example. Suppose I have a company in China, and I have registered a company in Hongkong. If a Hong Kong company invests directly with me, is it a legal person background in China? Not exactly. However, if a Hong Kong company is directly invested and established by a domestic company, it will have a Chinese legal person background. If I register and set up a company in Singapore and a Singapore company invests and sets up a Hong Kong company in Hong Kong, does this Hong Kong company have a legal person background in China? The answer is none. That is to say, at least one shareholder of the borrower is a China enterprise, and the state has issued such a policy to encourage domestic enterprises to go overseas. However, for natural persons to go overseas, the current policy is not clear, and we need to pay special attention to this point about the "domestic insurance and foreign loans" business.
What benefits will domestic insurance and foreign loan business bring to customers? First of all, enterprises do not need to go to SAFE for approval, but can support the development of overseas companies with the help of domestic companies and effectively provide support for overseas companies. At the same time, our offshore center can also operate with the same bank in various ways, with faster approval and more convenient procedures, which is convenient for our overseas companies to participate in international competition. After introducing the business of "domestic insurance and foreign loans", I would like to share with you the business of "external insurance and domestic loans". Company A in Hong Kong urgently needs RMB loans because of its domestic subsidiary B and B, but the company has a large amount of foreign currency deposits in Hong Kong. What should I do if I have money but can't get in? Suppose another company in the British Virgin Islands, A, has a large amount of overseas deposits, but it will take some time for domestic investment approval, and its domestic subsidiary B is in urgent need of funds. What do we do in this context, the "external insurance and internal loan" business can solve the difficulties for enterprises. That is, overseas enterprises apply to the offshore center of Bank of Communications for issuing a letter of guarantee through overseas funds, and the offshore center of Bank of Communications issues a financing letter of guarantee to the domestic branch of Bank of Communications. After receiving this letter of guarantee, the domestic branch of Bank of Communications can provide RMB credit for domestic enterprises. Through this business, it can bring the following advantages: the development of domestic companies can be supported by the strength of overseas companies, and the funds of overseas companies can be used as a guarantee condition for domestic credit granting when they enjoy higher returns. Overseas funds don't need to be remitted to China, which avoids the uncertainties when the funds are withdrawn. All related businesses are operated in a bank of Bank of Communications with simple procedures.