How does a Chinese investment group obtain a letter of credit in the U.S. when its assets are still in China?
Answers
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Jason Zhang answered:
Most of the state-owned banks of China (Bank of China, ICBC, CCB, ABC, etc) would issue a letter of credit (with their offshore branch) based on the company's assets onshore in China. However, with the current tightened policy and scrutiny on "back-to-back" loan, it can be difficult to obtain one without proper business justification.
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Michael Meagher answered:
One way is if their Chinese bank does business in the US or has a correspondent relationship in the US.
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Mark Drumm answered:
The easiest is to go through a Chinese Bank with a presence in the United States.
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David Lynn answered:
Use an international bank like HSBC.
