INDUSTRY AND TRADE
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The Hong Kong Convention and Exhibition Centre was officially opened on November 9 by Their Royal Highnesses The Prince and Princess of Wales, although it had begun functioning some months earlier. During its first year of operation the centre hosted 571 conventions, exhibitions, seminars and other corporate gatherings.
Hong Kong Export Credit Insurance Corporation
The Hong Kong Export Credit Insurance Corporation (ECIC) is a statutory corporation established in 1966 to provide insurance protection to exporters against the risk of monet- ary loss arising from non-payment by their overseas buyers for goods exported and services rendered on credit which are not normally covered by commercial insurers. The maximum percentage of indemnity against country and buyer risks is 90 per cent.
The corporation's paid-up capital of $20 million is provided by the government, which guarantees the payment of all moneys due by the corporation. The maximum contingent liability arising from its insurance and guarantees operations which may be assumed by the corporation is $6,000 million. The corporation is autonomous in its day-to-day operations and is run on a commercial basis. In the conduct of its business, the corporation is assisted by a 12-member Advisory Board comprising prominent members of the private business sector and representatives from the government.
It insures domestic exports and re-exports transacted on all kinds of short-term credits and payment methods including documents against payment, documents against accept- _ance and open account up to a maximum credit period of 180 days. Shipments from third -countries direct to overseas buyers may be covered. Cover is also available to protect the exporters against buyers' insolvency during the manufacturing stage, against non-payment due to war and civil disturbance, or against confiscation and non-repatriation of raw materials, work-in-progress and finished products where goods are manufactured outside Hong Kong. For exports of capital goods and services sold on medium or long-term credits, the corporation can provide tailor-made insurance policies.
The corporation is a member of the International Union of Credit and Investment In- surers (the Berne Union) and has regular access to confidential and updated economic and market information on all major trading countries.
Being a professional credit manager itself, the corporation conducts assessments on credibility of overseas buyers and gives advice on credit-risks monitoring and debt collec- tion. These services have proved invaluable to exporters who lack resources to have effective credit management systems.
The corporation has a computerised databank containing information on over 60 000 overseas buyers. This enables it to deal speedily with policyholders' enquiries and helps ex- porters to determine the extent of credit which they may prudently trade with these buyers.
In 1989, the corporation insured a total of $11,468 million in goods and services, an in- crease of 12 per cent over 1988, and earned a total premium income of $68 million. Against this, 81 claims totalling $27 million were paid.
Other Trade and Industrial Organisations
Hong Kong has a number of major trade and industrial organisations which provide services to their members and represent their views to the government, either of their own accord or in response to government consultation.
The Hong Kong General Chamber of Commerce is the oldest internationally-recognised trade association in Hong Kong. Established in 1861, it now has a membership of some 2 700 companies representing all branches of commerce and industry, including exporters