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22-09-2014, 01:30 PM
(This post was last modified: 22-09-2014, 01:30 PM by specuvestor.)
(21-09-2014, 09:29 PM)CityFarmer Wrote:(20-09-2014, 10:14 PM)weijian Wrote: It seems like previously, SAFE approval is required to secure asset collateral for offshore lending, but it was subsequently relaxed in Jun2014.
Link: http://www.financeasia.com/News/388735,c...nders.aspx
"You couldn't get onshore security for offshore loans", as stated in the article, is an incorrect statement. It was time consuming to get it approved, and it is not an issue nowadays, base on observation on offshore borrowings.
Technically onshore security can be sought but I have yet to heard non locals able to seize local assets in China. That's probably why offshore banks still would want offshore collateral vs say Singapore.
Therein lies the primary problem of S-chips and such. Non-local shareholders' claim are on the onshore assets.
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