Clifford Chance

China relaxes controls on cross-border security: implications for structuring cross-border asset finance transactions

4 June 2014

On 12 May 2014, the State Administration of Foreign Exchange ("SAFE") of the People's Republic of China ("PRC") issued the Provisions for Foreign Exchange Control over Cross-border Security and a set of corresponding operation guidelines (collectively, the "Provisions") which reform the PRC's regulatory regime for cross-border security ("Cross-border Security", previously referred to as "foreign security").  The Provisions will become effective as of 1 June 2014 .  The Provisions make significant changes to the legal regime governing Cross-border Security and signal the PRC's significant step forward in deregulating capital account transactions .  This briefing focuses on the potential impact of the Provisions on structuring cross-border asset finance transactions involving PRC entities or assets.

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