ENG-1995 — Page 141

TRADE AND INDUSTRY

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designers test-market more than 18 000 innovative products to the 50 000 local and international visitors who come to the Design Gallery each month.

Fashion is a flagship for design promotion. The TDC stages regular salon shows in Hong Kong to launch the collections of local designers. It also stages large-scale catwalk shows both overseas and on the mainland to introduce Hong Kong designers and labels to international audiences. In 1994-95 the collections of more than 150 individual designers and labels were featured through the TDC's 35 fashion shows around the world.

Most importantly, to raise Hong Kong's profile as an important trading power and to advance its business interests in world markets, the TDC conducts an active programme to develop contacts with international business leaders, policy-makers and the media. The connections built are most helpful in spreading positive messages about Hong Kong, and its advantages as a business hub in Asia. The TDC received more than 350 missions from 36 countries, involving more than 4000 company executives during the year.

Hong Kong Export Credit Insurance Corporation

The Hong Kong Export Credit Insurance Corporation (ECIC) was created by statute in 1966 to provide insurance protection for Hong Kong exporters against non- payment risks arising from commercial and political events which are not normally insured with commercial insurers. Its capital is owned by the Hong Kong Govern- - ment which also guarantees its contingent liability, currently standing at $7,500

million.

Apart from the initial injection of HK$20 million from the government, the ECIC is required to secure sufficient revenue to meet its expenditure from one year to another. Throughout its 29 years in operation, ECIC has been able to achieve this target without any cost to Hong Kong tax-payers.

The ECIC's achievement is mainly attributed to its commercial approach in taking on risks without prejudice to any industry or trade. To ensure that there is proper control of these risks, the classes of insurance contracts into which the ECIC may enter, and the nature of risks against which it may insure, are subject to the approval of the Financial Secretary. The ECIC also has the benefit of the advice of an advisory board comprising representatives from the banking, insurance, legal, trade and industrial sectors and government officials.

The ECIC's most important insurance product is the Comprehensive Shipments. Policy, which accounted for nearly 90 per cent of its total insured turnover in 1994-95. This policy covers consumer goods exported/re-exported from Hong Kong on credit terms of up to 180 days. Another commonly used policy is the External Trade Shipments Policy, which covers goods manufactured outside Hong Kong and exported directly to third-country buyers. Cover for services and capital goods can also be tailor-made to meet exporters' individual needs.

During 1994–95, total insured business reached $16,674 million, representing an increase of seven per cent over that in 1993–94. Gross premium income increased by eight per cent to $99.27 million. Despite higher claims and lower investment income, the ECIC still achieved a surplus of $34.29 million.

Internationally, the ECIC maintains close co-operation with members of the International Union of Credit and Investment Insurers (the Berne Union) — a