March 31 2020

Two Authorities Move to Facilitate Cross-border Financing by Chinese Institutions

Source: safe.gov

The People's Bank of China and the State Administration of Foreign Exchange issued on March 12, 2020 the Circular about Adjusting Macro-Prudential Management Parameter of Full-Covered Cross-Border Financing.

The circular said that the macro-prudential management parameter of full-covered cross-border financing will be lifted to 1.25 from 1. The adjustment will be helpful for domestic companies, especially small and medium-sized firms and private companies, to tap into the domestic and foreign markets to raise funds at affordable cost. The circular is immediately effective.