Laws of the People's Republic of China

The State Administration of Foreign Exchange

Reply of the General Department of State Administration of Foreign Exchange on the Issue of Providing Guarantees for Rmb Loans Extended by Domestic Foreign-capital Banks

Huizonghan [2001] No.50

June 8,2001

The Bank of China:

The document coded Lianyeshang [2001] No. 1125, from Hong Kong and Macao Administration Office of the Bank of China, has been received. We hereby reply as follows:

According to relevant foreign exchange regulations, the RMB loans to domestic entities extended by domestic foreign-capital banks that are authorized to operate RMB business are not regarded as external debts of domestic entities, and do not need approval or external debt registration. Therefore, guarantees for this kind of RMB loans are not regarded as external guarantees, and thus do not need approval beforehand or external guarantee registration.

It is hereby replied as above-mentioned.