China's central bank tightens limit for firms to borrow abroad

File photo: agencies

China's central bank said on Thursday it had tightened the limit for domestic firms to raise funds in overseas markets as part of efforts to rein in cross-border financing risks.

The People's Bank of China (PBOC) lowered a parameter on cross-border corporate financing under its macro-prudential assessments to 1 from 1.25, it said in a statement published on its website.

That reversed a move in March when the central bank eased conditions allowing domestic coronavirus-hit firms to conduct overseas funding more easily.

China has recorded a steady rebound from the coronavirus crisis, with manufacturing activity sustaining its recovery to pre-pandemic levels.

The string of upbeat data has led economists to forecast some winding down in 2021 of China's easing measures introduced since the start of the pandemic.