New Safe rules do little to help Chinese borrowers

China’s new SAFE cross-border rules enable Chinese borrowers to back loans with onshore assets but restrictions over remitting the funds back onshore will cap borrowing.

New rules that make it easier for Chinese companies to use onshore assets as security for offshore loans are unlikely to spark a wave of lending. The rules were issued by China’s State Administration of Foreign Exchange (Safe) on June 1, but restrictions over remitting the proceeds back onshore has dampened initial enthusiasm.

¬ Haymarket Media Limited. All rights reserved.

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