China

China

Lifts restrictions on foreign investment companies using domestic loans to carry out equity investment

09 Jan 2025

On 9 January 2025, China lifted restrictions on foreign investment companies using domestic loans to carry out equity investment. In a 2011 Circular, China had imposed restrictions on domestic loans for foreign-invested companies, allowing only limited lending under certain conditions and regulating equity investment through domestic loans. With the recent decision, foreign companies are able to utilize domestic loans in China fund equity investments.