BEIJING, Aug 2 (Reuters) - China’s foreign exchange regulator said on Wednesday it supports the legitimate use of domestic assets as collateral for overseas loans.
The State Administration of Foreign Exchange said that media reports that it is investigating certain firms’ use of domestic assets as collateral for foreign loans are not true and that it is not examining these practices.
Bloomberg reported on Tuesday that SAFE was examining companies including Anbang Insurance Group, Dalian Wanda Group Co, Fosun International, and HNA Group on how they use domestic assets as collateral for foreign loans.
SAFE said on its microblog it would strictly crack down on fake guarantees from financial institutions. (Reporting by Beijing Monitoring Desk and Elias Glenn; Editing by Jacqueline Wong)