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.
