China still a 'dirty' netting jurisdiction for banks

Lack of certainty over close-out netting continues in China

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The enforceability of close-out netting of derivative contracts in China is still unclear and China is still not a 'clean' netting country, according to a new legal opinion commissioned by the International Swaps and Derivatives Association. The memorandum which was issued by Isda to its members on February 20 was prepared by King & Wood Mallesons following the release of a new interpretative guidance published by the Supreme People's Court in September 2013, concerning the application of