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PR Newswire
03-03-2014, 04:46 PM
The FTZ restrictions are eased gradually. May be the day the FTZ become as "free" as HK, is not too far away...
China eases restrictions on offshore lending in Shanghai zone
03 Mar 2014 13:12
[SHANGHAI] China's foreign currency regulator eased restrictions for companies registered in Shanghai's recently established free trade zone (FTZ), increasing the amount of foreign currency companies registered in the zone can lend in offshore markets, according to an announcement posted on the FTZ's website.
The new regulations issued by the State Administration of Foreign Exchange (SAFE) increase the amount of funds companies can lend to 50 per cent of net ownership equity, up from 30 per cent.
The rules also allow domestic banks registered in the zone to use up to 10 per cent of foreign exchange held in a zone account for investment in China.
China has been moving to make it easier for multinationals and domestic companies in China to manage their foreign exchange, in particular by making it easier to borrow and lend offshore.
SAFE released a consultation paper detailing plans to make it easier for domestic companies to guarantee debt incurred overseas in mid February, shortly after it liberalised policies allowing intra-company loans across borders, which effectively allows firms to move currency to where it is most needed.
...
Ref: Business Times Breaking News
China eases restrictions on offshore lending in Shanghai zone
03 Mar 2014 13:12
[SHANGHAI] China's foreign currency regulator eased restrictions for companies registered in Shanghai's recently established free trade zone (FTZ), increasing the amount of foreign currency companies registered in the zone can lend in offshore markets, according to an announcement posted on the FTZ's website.
The new regulations issued by the State Administration of Foreign Exchange (SAFE) increase the amount of funds companies can lend to 50 per cent of net ownership equity, up from 30 per cent.
The rules also allow domestic banks registered in the zone to use up to 10 per cent of foreign exchange held in a zone account for investment in China.
China has been moving to make it easier for multinationals and domestic companies in China to manage their foreign exchange, in particular by making it easier to borrow and lend offshore.
SAFE released a consultation paper detailing plans to make it easier for domestic companies to guarantee debt incurred overseas in mid February, shortly after it liberalised policies allowing intra-company loans across borders, which effectively allows firms to move currency to where it is most needed.
...
Ref: Business Times Breaking News
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