The AIM-quoted investment fund Adamas Finance Asia (ADAM) expects to benefit from newly-introduced reforms to ease controls on cross-border lending to Chinese businesses.
The new reforms were introduced this month by China’s State Administration of Foreign Exchange (SAFE) to address concerns that tight credit and slowing investment may stall the country’s 7.5 per cent GDP growth objective for 2015.
According to the Magic Circle law firm Clifford Chance, the easing of lending controls can be expected to reduce transaction times and associated costs for offshore investors who also stand to benefit from increased flexibility and strengthened enforcement over security.
ADAM chairman John Croft says: “We have little doubt the streamlining of rules resulting from the new changes will result in even wider investment opportunities within China. Key among the changes is the removal both of quotas and of the need for SAFE approval on security to underpin cross-border lending.”
