Hong Kong Export Credit Insurance Corporation: No plans to adjust premiums due to Middle East situation

The Director of the Hong Kong Export Credit Insurance Corporation (Hong Kong Export Credit Corporation) Zhao Minzhong said that customers are concerned about credit insurance under geopolitical risks, but Hong Kong's exports to the Middle East only account for 2.5% of the total, not a major export destination. The Hong Kong Export Credit Corporation will closely monitor the latest situation, has no plans to adjust premiums, and will continue to cover existing Middle East policies. He pointed out that the market generally increases premiums in response to rising risks, but in April last year when the US implemented retaliatory tariffs, the Hong Kong Export Credit Corporation instead halved the insurance rate for goods before delivery. The Corporation will respond to market conditions and assist exporters in doing business. Zhao Minzhong predicts that the insured business in 2025 may reach a new high for two consecutive years, estimated at nearly HK$200 billion, higher than the approximately HK$160 billion in 2024. He is optimistic about the performance of related businesses this year, as the Middle East conflict has increased exporters' risk awareness, and customers at the beginning of the year indicated that the export of AI-related electronic products drove business growth, increasing the demand for credit insurance. The Chairman of the Advisory Committee of the Hong Kong Export Credit Corporation, Chan Ruijuan, said that the Corporation has been working side by side with Hong Kong exporters for 60 years, supporting companies in expanding markets steadily during different economic cycles. Today, the coverage of the Hong Kong Export Credit Corporation's underwriting range has extended to over 200 countries and markets, with the total insured business amounting to over HK$2,450 billion in the last fiscal year. Chan Ruijuan pointed out that in the face of a complex and ever-changing global trade environment, the Hong Kong Export Credit Corporation will continue to advance with the times, providing innovative services and more comprehensive protection to support small and medium-sized enterprises in facing challenges, seizing new opportunities, aligning with the national "15th Five-Year Plan," fully leveraging Hong Kong's role as a "super connector" and an important platform for going global, working hand in hand with the Hong Kong export industry to "build a future together".