Friday, November 10, 2017
"Outbound Guarantee" might become history
ANBOUND
China National Development and Reform Commission (NDRC) has recently promulgated the Measures for the Administration of Enterprise Overseas Investments and planned to incorporate the overseas investment made by overseas enterprises controlled by Chinese enterprises into the management framework and supervised some sensitive projects in an attempt to block various modes of capital outflow . Assuming the capital outflow in 2016 is US$ 900 billion, it is conservatively estimated at a ratio of 40% of the size of the "Outbound Guarantee" fund has exceeded RMB 2 trillion. Under the trend of strong regulation, it is possible that the loan model of “Outbound Guarantee” will become history.