China lowers key parameter to rein in cross-border financing

BEIJING, Dec. 11 (Xinhua) — China on Friday lowered a key parameter in its macro-prudential management to rein in the ability of its financial companies to borrow foreign debt.

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, down from 1.25 previously, according to a joint statement issued by the People’s Bank of China and the State Administration of Foreign Exchange.

The downward revision aims to further improve the macro-prudential management of cross-border financing and guide financial institutions to adjust their foreign debt structure, the statement said.

Financial institutions should stick to a “risk-neutral” philosophy and better serve social and economic development, it added.

Related posts

China to advance domestic efforts for implementing RCEP agreement


China’s express delivery services "speed up" during this year’s Singles’ Day shopping festival


China’s economic activity normalizes faster than expected: World Bank