In the News: Foreign Debt Reforms; Risk Classification of Bank Assets; and First Foreign-Owned Securities Firm

February 15, 2023 | BY

Hugo Yeung &Clarence Lee

China has imposed new regulations on PRC companies raising foreign mid-to-long-term debt; It also has introduced stricter measures on bank asset risk classification; and for the first time, it has granted a wholly foreign-owned securities firm permission to be established in China.

Credit: Antonio/Adobe Stock

Foreign Debt Regulation to be Clarified

On February 10, the National Development and Reform Commission's (NDRC) Measures for Administration of the Review and Registration of Mid- to Long-Term Foreign Debt of Enterprises (企业中长期外债审核登记管理办法) took effect, replacing the 2015 Circular on Promoting the Reform of the Filing and Registration Regime for Issuance of Foreign Debt by Enterprises (关于推进企业发行外债备案登记制管理改革的通知).

The new measures fill existing regulatory gaps and tighten regulations against PRC enterprises raising medium and long-term debt with a maturity of more than one year. Market