The newly-built hotel of the enterprise has been completed, and the loan is applied to pay the project cost of the affiliated enterprise. Can loan funds be used for related party transactions?
Generally speaking, the CBRC made regulations many years ago to restrict the flow of loans from commercial banks, which is a taboo and a common problem in the industry. It is suggested to negotiate with the bank and not to act without authorization, otherwise we don't know whether commercial banks and CBRC will settle accounts after the autumn, and the intensity of settling accounts after the autumn is unpredictable.