New constraints on Chinese insurers providing outbound guarantees for offshore debt

The China Insurance Regulatory Commission (“CIRC”) and State Administration for Foreign Exchange (“SAFE”) have issued a joint circular which limits the extent to which insurers can provide onshore guarantees for offshore debt, amongst other governance requirements. This contributes to a series of measures to bolster the stability of insurance companies and also reflects the latest outbound investment rules aimed at limiting the exposure of domestic institutions to high risk offshore assets and more closely regulating transactions structured through offshore vehicles.  

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