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Zhong Lun Advised on the First Issuance of Bank Bonds by Foreign-funded Bank in China Mainland
Zhong Lun Advised on the First Issuance of Bank Bonds by Foreign-funded Bank in China Mainland
Prior to the dawn of 2010, a foreign-funded bank has become the first to obtain regulatory approval to issue bank bonds in the national inter-bank bond market in the mainland China after submitting an application to the regulatory authorities in the autumn.
Zhong Lun Law Firm represented the foreign-funded bank in the matter. Team members, namely Wilson Wei Huo, Fan Lei, Lei Yang and Chong Li, are from the firm’s Beijing head office.
Following the massive issuances of bank bonds (including common bonds and subprime bonds) by local banks, China’s regulatory authorities finally allowed foreign-funded banks to issue bank bonds in the national inter-bank bond market in the summer of 2009. This is of great significance for foreign-funded banks to improve their management over assets and liabilities, defuse financial risks and enhance their liquidity. Meanwhile, it also provides a secondary-new type of investment product in the national inter-bank bond market, which has steady income and low risks.
