(By You Yunting and Wang Ting) The Chinese government imposes very strict regulations in regard to guarantees in foreign funds for domestic companies. Overseas companies or institutions, whether acting as a guarantor or a guaranteed person, must perform these registration procedures. Today we would like to introduce how domestic companies perform these registration procedures when overseas companies attempt to provide guarantees for domestic loans.
When overseas companies, in accordance with relevant regulations regarding loans to domestic finance organizations, offer loans to aforesaid finance organizations, these domestic groups can accept such loans and guarantees from both individuals and organizations outside China’s border. Such services provided by individuals and organizations in foreign jurisdictions can support the development of domestic companies, as well as exert positive effects on the investment of enterprise fixed assets and requirements of liquid capital.