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Update on PRC Cross-Border Lending Transactions

by H. John Kao
Jones Day - Beijing Office

Graham G. Lim
Jones Day - Hong Kong Office

Wilson L.K. Sung
Jones Day - Hong Kong Office

Jessie Chenghui Tang
Jones Day - Beijing Office

Michelle Taylor
Jones Day - Hong Kong Office

August 27, 2014

Previously published on August 2014

The State Administration of Foreign Exchange (“SAFE”) of the People’s Republic of China (“PRC”) is the body that supervises the country’s foreign exchange transactions. SAFE recently issued two circulars to encourage cross-border transactions: Circular No. 29 [2014] Provisions on Foreign Exchange Administration of Cross-Border Guarantee and Security (“Circular 29”) and Circular No. 37 [2014] Issues Relating to the Administration of Foreign Exchange in Respect of Offshore Investments, Financings and Return Investments by Domestic Residents through Special Purpose Vehicles (“Circular 37”). Circular 29 took effect on June 1, 2014 and Circular 37 was issued on July 14, 2014. Both support China’s strategy for domestic companies to “go global” by relaxing restrictions on foreign exchange transactions.


The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.

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