The People's Bank of China and the State Administration of Foreign Exchange jointly issued measures to further support and regulate offshore lending by domestic enterprises, introducing unified management for renminbi and foreign-currency lending and bringing the activity under a macroprudential framework. Under the measures, the ceiling for an enterprise’s outstanding offshore lending balance is linked to its owners’ equity, with firms permitted to conduct business within the resulting limit. The macroprudential adjustment coefficient is increased to 0.6 from 0.5, raising the overall offshore lending balance cap, and management and use-of-funds requirements are set for domestic banks and enterprises to help control risks. The two authorities indicated they will推进稳步实施 the notice and related measures.
Central Bank of the Republic of China 2026-03-20
People's Bank of China and State Administration of Foreign Exchange unify management of domestic firms’ offshore lending and raise the macroprudential factor to 0.6
The People's Bank of China and the State Administration of Foreign Exchange have issued measures to regulate offshore lending by domestic enterprises, introducing unified management for renminbi and foreign-currency lending under a macroprudential framework. The measures link the ceiling for an enterprise’s offshore lending balance to its owners’ equity and increase the macroprudential adjustment coefficient to 0.6, raising the overall lending balance cap. Management and use-of-funds requirements are set for domestic banks and enterprises to control risks.