Does anyone here know anything about the Chineese money market / bank lending practices and legalities?
Is there any way to leverage their absolutely low interest rates for an international venture, i have some old aquaintances in China who might be able to act on my behalf, but i'd like to know more about the barriers and risks before i delve deeper into this concept.Our subsidiary company is based in China and we have direct access to 7 of the top Chinese based banks, however 6 of them only lend to;
1. Commercial deals over 15M OR
2. Existing clients of their banks OR
3. Chinese citizen ( it’s not easy getting money out of china, it;s all controlled by their Gov)if your after a much smaller residential lending; then we use Bank of china – but it’s standard rates, as some of their funding source is Australian based as well ( TD). ( current offer 5.50% fixed 15 years)
It’s never wise to leverage off international banks for residential lending JUST because the rates are low now…the rates will change + different policy in terms of “breaking the contract” and currency will kill you as well.
We only suggest international based banks for commercial deals; where the terms are shorter + it’s fixed.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
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