China FX watchdog bares teeth on M&A financing

China’s foreign exchange regulator is toughening its stance on raising debt offshore by pledging domestic assets. The crackdown will slow outbound acquisitions.
China's foreign exchange regulator
China's foreign exchange regulator

Ever heard of Nei Bao Wai Dai? Chinese corporates and bankers often use the phrase – in Chinese pinyin form – to refer to getting an onshore bank to provide a guarantee letter in order to obtain a loan offshore, typically in Hong Kong.

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