Die Liberalisierung grenzüberschreitender Besicherung von Akquisitions- und Konzernfinanzierungen nach den neuen SAFE-Bestimmungen

Abstract

The Liberalisation of Cross-Border Security under the New SAFE Provisions

With effect as of 1 June 2014, the State Administration of Foreign Exchange (SAFE) released a new set of regulations governing the provision of cross-border security. In line with other recently introduced regulatory changes, the new SAFE provisions facilitate the provision of cross-border credit support by Chinese companies in respect of both offshore investments and obligations of their foreign holding companies. The new SAFE provisions also allow Chinese financial institutions to benefit from guarantees and security provided by offshore companies for loans granted to Chinese companies. The article describes the new SAFE provisions, shows how they relate to other provisions applicable under Chinese law and analyses their practical applicability based on various examples.