Cross-Border Yuan Lending

Coca-Cola Beverages （Shanghai） Ltd. has completed a 250-million-yuan （$40.85-million） inter-company loan to London-based Atlantic Industries， a Coca-Cola subsidiary， with the help of Citibank China.

China’s central bank issued a circular in August about simplifying the cross-border renminbi business process， which for the first time allowed multinationals in China to make intercompany loans to their operations globally. The loan makes Coca-Cola one of the first multinational companies in China to benefit from the new regulation.

The transaction also marks the first renminbi cross-border lending operation for Citibank China after the recent regulatory release， prior to which onshore banks had to seek approval from the central bank for renminbi denominated loan quotas on behalf of their clients， a process that usually took roughly two months. Now it takes less than 10 working days.

Fund Management JV

AMP Capital will establish a funds management company in China with China Life Asset Management Co.， Australian and New Zealand independent wealth management company AMP announced on September 2.

AMP Capital， a subsidiary of AMP， will hold a 15-percent stake in China Life AMP Asset Management Co.， with the rest to be held by China Life Asset Management Co.， a subsidiary of China’s largest insurer China Life Insurance Co. and one of the largest institutional investors in China.

The joint venture has received approval from the China Insurance Regulatory Commission， and is subject to approval by the China Securities Regulatory Commission.

It will be China Life’s first joint venture on the Chinese mainland with a foreign partner in funds management.

Recent regulatory changes in China allow insurance companies to establish funds management companies， offering public mutual funds to retail and institutional investors.