Features
Chinese Non-Performing Loans (NPLs): SAFE enhances pilot program to facilitate purchases of NPLs by foreign investors
Written by Anne-Marie Neagle, Xiaolian Zhang and Andrew Fei. On 29 May 2018, China’s State Administration for Foreign Exchange (SAFE) made several enhancements to an existing pilot program regarding the cross-border transfer of Chinese NPLs to foreign investors in Shenzhen (NPL Pilot Program). Pursuant to the NPL Pilot Program, foreign investors can purchase NPLs from Chinese asset management corporations (AMCs) and Chinese banks (regardless of whether they are based in Shenzhen) through the Shenzhen Qianhai Financial Assets Exchange (深圳前海金融资产交易所) (QEX). The NPL Pilot Program also allows Shenzhen banks to directly sell individual NPLs to foreign investors. Recent enhancements to the NPL Pilot Program – which include removing the program’s one-year time limit and streamlining the related SAFE filing process – are designed to make it even more efficient for foreign investors to participate in China’s NPL market. These enhancements are part of China’s efforts to address Chinese banks’ NPL levels, enhance overall financial stability and promote financial market reforms and innovation in the Greater Bay Area, which includes Shenzhen. Background to China’s NPL market and how foreign investors can participate Market background As China’s economy enters the “new normal” and undergoes significant transformations and reforms, Chinese companies – both private
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New tax incentive for overseas investors investing in the PRC
Capital plays an important and positive role in driving economic growth, industry upgrade and technology development.
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10 Tips for Effective Management of PRC
This article will be published in two parts.
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Crossing-Borders-Adapting-to-Global-Challenges-and-Opportunities
By Meg Utterback (Shanghai/London) , Guo Shining (Shenzhen) , Holly Blackwell (Shanghai) and Nicholas Lee
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