New PRC cross-border guarantee rules
By Jem Li and April Wang
On 12 May 2014, the State Administration of Foreign Exchange (SAFE) issued the Rules on the Foreign Exchange Administration for Cross-border Guarantee (Hui Fa  No. 29), which will become effective as of 1 June 2014.
In a major effort to further deregulate government control of capital, SAFE has taken one more step to basically eliminate the requirement of its prior approval of cross-border guarantee of loans and investment agreements. The significant changes brought by the rules will be welcome news to PRC companies as it would be less burdensome and less costly for them to provide guarantees to their offshore subsidiaries, as well as to foreign companies or governments. This is because under the rules they no longer have to deal with the uncertainty of not knowing if the terms of guarantees of loan agreements or investment agreements they negotiated with PRC parent companies will or will not obtain SAFE approval.
The rules have the following significance…
Click on the link below to read the rest of the Minter Ellison briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.