What is an overseas guarantee?

Overseas guarantee refers to an overseas guarantee behavior in which the guarantor is abroad and the guarantor is in China. As for the guarantor, it may be at home or abroad. According to China's current foreign exchange management regulations on overseas guarantees, the guaranteed projects mainly refer to loans from domestic financial institutions.

With the rapid development of global economic cooperation and increasingly close economic exchanges, the number and amount of guarantees obtained by domestic financial institutions from overseas entities have increased year by year. A large number of overseas entities have deposited their assets in China by buying real estate in China and setting up representative offices. Reasonable use of foreign institutions to provide guarantees is a new means for financial institutions to reduce financial risks.