Clifford Chance

China's new rules on cross-border security affect offshore bond issuance ‎and cross-border financing

5 June 2014

With a view to liberalising control over capital account transactions, the State Administration of Foreign Exchange (SAFE) issued the Provisions for Foreign Exchange Control over Cross-border Security and a set of corresponding operation guidelines (jointly the Provisions) on 12 May 2014.  The Provisions became effective as from 1 June 2014, and aim to reform and deregulate China's regulatory regime for cross-border guarantees and security (referred to as Cross-border Security).  The Provisions now present new opportunities for greater accessibility to Cross-border Security.  This briefing navigates through the main changes introduced by the Provisions, and specifically addresses their implications on offshore bond issuance and cross-border financing structures.

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