In an effort to further improve the management of comprehensive cross-border financing and increase the sources of cross-border funds for enterprises and financial institutions, guiding them to optimize their asset-liability structure, the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) have decided to raise the macro-prudential adjustment parameter for cross-border financing of enterprises and financial institutions from 1.25 to 1.5. This new measure will be implemented on July 20, 2023. (End)
In simple terms, the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) have made a decision to adjust a rule that affects how companies and financial institutions in China can borrow money from abroad. They are increasing the limit on how much money these entities can borrow from overseas sources. By doing this, they aim to encourage these companies and institutions to manage their debts and financial resources in a more balanced and efficient way. This change will take effect from July 20, 2023.
http://www.pbc.gov.cn//goutongjiaoliu/113456/113469/4994743/index.html