Ever heard of Nei Bao Wai Dai Chinese corporates and bankers often use the phrase in Chinese pinyin form to refer to getting an onshore bank to provide a guarantee letter in order to obtain a loan offshore, typically in Hong Kong.
The State Administration of Foreign Exchange Safe, China’s foreign exchange watchdog, on Wednesday said on its official weibo platform that it would “severely crack down on using fake or malicious collateral” in the practice.
The statement marked a gradual escalation from Safe’s stance since January in fighting capital outflows via the Nei Bao Wai Dai.
It is looking at whether...
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