China’s X-border transaction curbs are hindering companies that want to pay off debt offshore and increasing their appetite for X-border guarantee financing. But firms must play nice and not step across the line.
Amid great price volatility of raw materials, manufacturers inked deals with banks to lease raw metals from them rather than asking for loans to purchase the metals.
China has eased restrictions on Chinese non-financial corporations (corporates) looking to raise funds overseas, but market conditions mean they are unlikely to embrace the opportunity.
With the increasing liberalisation of renminbi, corporates such as IKEA are using it for trade settlement, treasury currency, as well as an investment instrument.