Suhuibao, a new government-bank cooperation financial service product, was jointly launched by Jiangsu Provincial Department of Commerce, Jiangsu Provincial Department of Finance, and Jiangsu Branch of the State Administration of Foreign Exchange. Backed by the province’s risk compensation fund for inclusive finance development, the product helps address MSMEs’ pain points in exchange rate risk management by offering low-threshold, low-cost, and highly efficient foreign exchange hedging support. It allows eligible enterprises to conduct forward foreign exchange settlement and sales without using up their bank credit lines or paying hefty margins, and therefore helps strengthen companies’ capability to manage exchange rate risks and ensure foreign trade stability.

In February 2026, after a tri-party assessment by the provincial departments of finance, commerce and foreign exchange administration, 13 banks in Jiangsu were singled out as the first partners for Suhuibao program, including five state-owned commercial banks, three national joint-stock banks, four city commercial banks, and one rural commercial bank.

A small metal products foreign trade company based in Wuxi became one of the first beneficiaries of Suhuibao. The company recently signed a large export order denominated in US dollars. Given the rising volatility in exchange rate, the company needed forward exchange rate locking to mitigate risks. This was when the company found itself in a dilemma; for a business at this small scale can hardly obtain a sufficient special credit line for derivatives, while depositing margin would incur substantial capital cost. In quick response to the company’s urgent need, Wuxi branch of the Bank of Jiangsu set up a service team to develop a tailored solution for the company, where Suhuibao became a perfect match.