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Measures for the Control of Provision of Security to Foreign Parties by Organizations within the People's Republic of China
(Promulgated by the People's Bank of China on September 25, 1996)

Article 1

Article 2

Article 3

Article 4

Article 5

Article 6

Article 7

Article 8

Article 9

Article 10

Article 11

Article 12

Article 13

Article 14

Article 15

Article 16

Article 17

Article 18

Article 19

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Manifest

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China - Measures for the Control of Provision of Security to Foreign Parties by Organizations, 1996

MOFTEC

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Measures for the Control of Provision of Security to Foreign Parties by Organizations within the People's Republic of China
(Promulgated by the People's Bank of China on September 25, 1996)

Article 6

A domestic enterprise may only provide security to foreign parties for foreign debts of its direct subsidiaries or for foreign debts of an enterprise in which it has a share holding up to the proportion of its investment in such enterprise.

When a trade type domestic enterprise provides security to foreign parties, the ratio of its net assets to total assets shall not in principle be less than 15%.

When a non-trade type domestic enterprise provides security to foreign parties, the ratio of its net assets to total assets shall not in principle be less than 30%.


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