The People's Bank of China and the State Administration of Foreign Exchange released on January 7, 2021 a Circular to lower the macro-prudential adjustment parameters for cross-border financing from 1.25 to 1, with immediate effect.
Enterprises whose risk-weighted balance of cross-border financing exceeds the new upper limit may hold the cross-border financing contract concluded earlier to its maturity. Other matters related to the macro-prudential management of cross-border financing are still subject to the Notice of the People's Bank of China on Matters Concerning the Macro-Prudent Management of Full-caliber Cross-border Financing.