China sets new restrictions on companies' foreign debt to curb risks
Updated : May 17, 2018 02:19 PM IST
Companies and financial institutions that plan to issue medium- to long-term foreign debt cannot ask for or accept guarantees from local governments for financing activities.
They will also be banned from disclosing information on possible government credit support when they issue bond prospectuses to potential investors, and credit rating agencies cannot link corporate credit with local government finances.
Firms seeking to raise medium- and long-term foreign debt should use interest rate swaps, forward foreign exchange trading, options, swaps and other financial products to hedge currency and interest rate risks.
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