China's foreign exchange regulator has detailed plans to make it easier for companies to guarantee overseas debt, in a move that could have big implications for the Asian credit markets. State Administration of Foreign Exchange, or SAFE, released a consultation paper on cross-border guarantees on February 13, outlining proposals to allow onshore companies to register cross-border payment guarantees, instead of seeking approval in advance. "SAFE seems to be changing its regulatory role: moving to an overseer rather than a gatekeeper as the system is changing to a registration system from a quota system," said Vivian Lam, a partner at law firm Paul Hastings.
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