Issued by: People's Bank of China, State Administration of Foreign Exchange
Release Date: January 13, 2025
Effective Date: January 13, 2025
Links: https://www.gov.cn/lianbo/bumen/202501/content_6998233.htm

A. The People's Bank of China and the State Administration of Foreign Exchange announced on the 13th that the macro-prudential adjustment parameter for cross-border financing of enterprises and financial institutions will be raised from 1.5 to 1.75, effective on January 13, 2025.

B. Raising the macro-prudential adjustment parameter for cross-border financing means that domestic enterprises and financial institutions can raise more funds from overseas. After the adjustment, under the macro-prudential model, the maximum amount of foreign loan that an enterprise can borrow is 3.5 times its net assets.