by David Olsson King & Wood Mallesons’ Melbourne office.

olsson_dOver the last few years, the opportunities for investing internationally and domestically in RMB have continued at pace. RMB’s longer-term potential has been recently further reinforced by its inclusion into the basket of currencies that constitute the International Monetary Fund’s Special Drawing Rights.

The expanded role

By Xueli Cheng Roy Zhang and Hai Zhuo, King & Wood Mallesons’ Banking Group

cheng_xuelizhang_royOn July 10, 2015, the People’s Bank of China Guangzhou Branch issued the Interim Administrative Measures for Pilot Cross-border RMB Loan Business in Guangdong Nansha and Hengqin New Zones (the “Measures”), which provide the relevant enterprises in Guangdong Province with a new cross-border financing channel and create an additional reflux channel for overseas RMB capital. The promulgation of the Measures indicates that the preferential policy of cross-border RMB loan has been put into place in all three sub-zones of the Guangdong FTZ, i.e., Qianhai, Nansha, and Hengqin.

KWM Shenzhen Office is assisting a Hong Kong bank in handling one of the first batches of cross-border RMB loans after the promulgation of the Measures. Our brief comments on the main contents of the Measures are as follows:
Continue Reading The Launch of the Cross-border RMB Loan Policy in Nansha and Hengqin

By King & Wood Mallesons’ Banking Group

1. Overview

  • On 20 February 2014, the People’s Bank of China (PBOC) issued the Measures Supporting the Expansion of Cross-border Use of Renminbi in the China (Shanghai) Pilot Free Trade Zone (《关于支持中国(上海)自由贸易试验区扩大人民币跨境使用的通知》)(PBOC Notice). The PBOC Notice provides various policy support in relation to the cross-border use of Renminbi (RMB) in the China (Shanghai) Pilot Free Trade Zone (FTZ), including: (1) cross-border RMB settlement for current account and direct investment; (2) individual RMB settlement account; (3) offshore RMB borrowings by FTZ entities; (4) two-way cross-border RMB cash pooling; (5) centralized current account RMB payments and collections; (6)RMB settlement for cross-border e-commerce; and (7) cross-border RMB trading.
    Continue Reading PBOC Issued Detailed Rules to Expand Cross-border Use of Renminbi in the Shanghai Free Trade Zone