CHINA China raises key parameter to facilitate cross-border financing

CHINA

China raises key parameter to facilitate cross-border financing

Xinhua

13:39, October 25, 2022

The headquarters of the People's Bank of China. (File photo: Xinhua)

BEIJING, Oct. 25 (Xinhua) -- China on Tuesday raised a key parameter in its macro-prudential management to allow companies and financial institutions to borrow more foreign debt, an official statement said.

The macro-prudential adjustment parameter, a multiplier that decides the upper limit of outstanding cross-border financing an institution can have, has been revised to 1.25, up from 1 previously, according to a joint statement by the People's Bank of China and the State Administration of Foreign Exchange.

The upward revision aims to further improve the macro-prudential management of cross-border financing and guide enterprises and financial institutions to optimize their foreign debt structure, the statement added.

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