The Evolving Landscape for Finance in Greater China

Requirements and regulations in the region highlight the growing importance of cross-border financing.

November 17, 2015

Hong Kong has long served as a financial center for Asia. Now, as demand for capital in mainland China increases, and Chinese restrictions are easing, the region is poised for greater cross-border activity in the financial markets, including debt capital markets, bank loan markets and through private equity financing. Latham’s Capital Markets Practice lawyers in Hong Kong provide key insights on recent regulatory developments and requirements for cross-border financing in Hong Kong.

NDRC Eases Restrictions for Offshore Bond Offerings and Loans

On September 14, 2015, China’s National Development and Reform Commission (NDRC) issued the Circular on Promoting the Reform of the Filing and Registration System for Issuance of Foreign Debt by Enterprises (the NDRC Circular) (国家发展改革委关于推进企业发行外债备案登记制管理改革的通知). The NDRC Circular has introduced a registration system for foreign debt to replace the existing case-by-case pre-approval system, representing a major regulatory breakthrough — easing restrictions on Chinese companies raising offshore financings. The NDRC Circular came into force immediately upon promulgation. Read the full Client Alert.

Cross Border Financing Report 2015, Hong Kong

Howard Lam and Hong Cheong Wong cover the ins and outs of financing in Hong Kong in a chapter from the IFLR’s annual supplement. Read the full chapter.

New SAFE Regulations Improve Access to Onshore Credit Support

On May 19, 2014, China’s State Administration of Foreign Exchange (the SAFE) released the Provisions on the Administration of Foreign Exchange for Cross-Border Security (跨境担保外汇管理规定) (the New Cross-Border Security Provisions) and the Administration of Foreign Exchange for Cross-Border Security Implementation Guidelines (跨境担保外汇管理操作指引) (the Implementation Guidelines, together with the New Cross-Border Security Provisions, the New SAFE Rules). The New SAFE Rules came into force on June 1, 2014, and replaced the then existing set of rules governing the provision of cross-border security, including the Notice on Issues Relating to the Administration of Offshore Security Provided by Domestic Entities issued by the SAFE on July 30, 2010 (Circular 39). Read the full Client Alert.

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