(Yicai Global) Aug. 2 -- The State Administration of Foreign Exchange (SAFE) has refuted recent media reports that it was conducting checks on overseas acquisition-related financing activities carried out by Anbang Insurance Group, HNA Group Co., Wanda Group, Fosun International Ltd. and Zhejiang Rossoneri Investment.
SAFE said on a social media site today that it is not inspecting any Chinese-backed offshore financing activities related to these companies and the media reports are not true.
These firms made many investments abroad in recent years. Chinese investors typically obtain loans from foreign banks for their foreign affiliates or subsidiaries, with guarantees provided by a domestic bank. This practice significantly simplifies the financing process, and has been adopted by many Chinese companies for overseas investment projects.
The administration said it will support banks and enterprises in conducting genuine onshore-backed offshore financing operations carried out in compliance with regulations. SAFE will work with other regulators to tighten supervision of the financial market and guide institutions to ensure effective compliance and risk management involving relevant financing activities abroad.