Shanghai: Foreign-invested companies are permitted to use domestic loans to make equity investments
The Shanghai Municipal Development and Reform Commission, the Municipal Commission of Commerce, and other relevant departments have issued the “Several Measures of Shanghai Municipality to Encourage Domestic Reinvestment by Foreign-Invested Enterprises,” which proposes broadening financing channels for reinvestment. The measures include assisting foreign-affiliated shareholders with loan applications and guiding foreign-invested enterprises to make full use of streamlined procedures for the review and registration of medium- and long-term foreign debt when applying for loans from foreign-affiliated shareholders for domestic reinvestment. Support will be provided for the parent companies of foreign-invested enterprises to issue "Panda bonds" in the interbank and exchange markets and retain the proceeds for domestic reinvestment. Banks will be directed to continuously optimize processes such as foreign exchange registration, the opening of special accounts, and fund transfers. Restrictions on the use of domestic loans by foreign-invested holding companies will be lifted, allowing such companies to use domestic loans for equity investments. Encourage financial institutions to provide differentiated financial products and services that are highly compatible with and specifically tailored to domestic reinvestment.
Source:富途快讯 · Source Link
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