Asifma calls for clarity on Safe rules

By Isabella Zhong
31 Jul 2014

The Asia Securities Industry & Financial Markets Association (Asifma) is to urge China’s State Administration of Foreign Exchange (Safe) for clarification of its revised rules on cross border guarantees. But bankers are unfazed by the ambiguity and are instead more concerned about constraints on remitting proceeds, writes Isabella Zhong.

The regulator simplified the administrative requirements for Chinese borrowers wanting to guarantee offshore debt issues, with rule revisions that took effect on June 1. While borrowers previously had to go through an onerous pre-approval process to make use of the credit enhancement feature, they now only need to ...

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