Off the wire
• Cold air to clear Beijing's persisting smog  • Red Cross supportive of activation of IHFFC in Kunduz hospital attack investigation  • (Recast) Greenpeace urges Indonesian gov't to settle forest fire, haze problems swiftly  • Poland to repair 6 engines of Bulgaria's MiG-29 fighter  • Pay dispute drags on ahead of Australia's A-League season launch  • Spain's industrial production rises by 5 pct in August  • Greenpeace urges Indonesian gov't to settle forest fire, haze problems swiftly  • China's National Day holiday traffic rush draws to close  • World No. 5 Muguruza one win away from WTA finals  • EU official to announce 40 mln-euro support for Peru in upcoming visit  
You are here: 　 Home

China's offshore debt issuance process streamlined: Fitch

Xinhua, October 7, 2015 Adjust font size:

China's further liberalization of the process for companies issuing offshore debt will help companies in terms of funding flexibility, Fitch Ratings said in a report Wednesday.

On Sept. 14, 2015, China's National Development and Reform Commission (NDRC) announced the adoption of a pre-registration system that requires onshore companies to pre-register with the NDRC or selected local NDRC branches before issuing any kind of offshore debt with maturity of more than one year.

This is required whether the debt is issued by the company or through its offshore subsidiaries or branches; or whether it is in Chinese yuan or a foreign currency. Companies are also required to file their completed debt issuance within 10 working days, according to the report.

NDRC will determine if the application for the pre-registration of offshore debt issuance will be processed within five working days.

"This change will streamline the offshore debt issuance process and give Chinese companies more flexibility in choosing between onshore and offshore debt," said the Fitch report.

But Fitch believed the immediate reaction will likely be muted as the process is but one of many factors a company considers before issuing offshore bonds.

Small companies that have been tapping offshore bank loans, however, may cut back on this channel as they will now be required to pre-register their offshore loan plans, Fitch said. Endi