Discussion Of Structured Trade Finance Model And Its Development In China

Since the entrance into WTO, our export has increased dramatically. In the mean time, our attention of international trade has transferred from quantity to quality. For the big machines and equipments financing, structured trade finance will be the most strength way.First, the thesis introduced that structured trade finance is to take the advantage of traditional and non-traditional trade finance means to meet the project need and its outer environment. By join different finance means together, structured trade finance include credit survey, financing, debt management. It is a completely new trade finance way.Then, we introduced all the structured trade finance instruments which target at the export of big machines and equipments, including export credit, syndicated loan, export credit insurance, forfaiting and guarantee. Facing different situations, we can join different financial instruments, also take the advantages and avoid the disadvantages to meet the financial demand during different phase in big machines and equipments export. Besides, we also introduced that structured trade finance can greatly cut the financial cost and disperse the risks accumulated in trade finance.The thesis takes ship export as an example, structured trade finance can offer 100% financing by combining export credit and forfaiting. Also, we gave out the idea that we can use bank guarantee together with forfaiting to help the export credit to make 100% financing for ship exporter.Although with great advantages and promising market future, structured trade finance is rare in China. The thesis points out that the export-import bank of China carries a large portion of structured trade finance, while commercial banks are still bothering with basic instruments such as forfaiting. Besides, the export-import bank of China is not clear with its status in structured trade finance and domestic enterprises are much used to the traditional financial instruments all of which greatly blocked the development of structured trade finance.In the last part of the thesis, we gave the suggestion for development of structured trade finance. It needs the cooperation of commercial banks, enterprises and government. Commercial banks should develop their financial instruments and take their overseas counterparts' experience as reference. Export enterprises should accept new financial instruments and design individualized structured trade finance. The export-import bank of China needs to transfer their status to become the credit departments. Policy makers must perfect laws to supply a better environment for the development of structured trade finance.