Hong Kong Export Credit Insurance Bureau Monitors Middle East Conflict Impact

Hong Kong Export Credit Insurance Bureau Director Zhao Minzhong has stated that clients are increasingly concerned about credit insurance due to geopolitical risks. According to RTHK, exports from Hong Kong to the Middle East account for only 2.5% of the total, making it a minor export destination. The bureau is closely monitoring the situation and has no plans to adjust premiums, with existing Middle East policies continuing to be covered. Zhao noted that markets typically raise premiums in response to increased risks. However, in April last year, when the U.S. implemented reciprocal tariffs, the bureau halved pre-shipment insurance rates. The bureau aims to assist exporters in conducting business based on market conditions. Zhao anticipates that insured business for the previous fiscal year may reach nearly HKD 200 billion, surpassing the previous year's approximately HKD 160 billion, marking a potential two-year high. He remains optimistic about this year's business performance, citing increased risk awareness among exporters due to the Middle East conflict and the growth in AI-related electronic product exports at the beginning of the year, which has boosted demand for credit insurance.