China FX watchdog bares teeth on M&A financing

China’s foreign exchange regulator is toughening its stance on raising debt offshore by pledging domestic assets. The crackdown will slow outbound acquisitions.

China FX watchdog bares teeth on M&A financing

Ever heard of Nei Bao Wai Dai Chinese corporates and bankers often use the phrase in Chinese pinyin form to refer to getting an onshore bank to provide a guarantee letter in order to obtain a loan offshore, typically in Hong Kong.

The State Administration of Foreign Exchange Safe, China’s foreign exchange watchdog, on Wednesday said on its official weibo platform that it would “severely crack down on using fake or malicious collateral” in...

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