The People’s Bank of China, together with the State Administration of Foreign Exchange, issued a notice introducing the Administrative Measures for Domestic Enterprises’ Overseas Lending, unifying renminbi and foreign-currency overseas lending rules for domestic enterprises and bringing the activity into a macroprudential management framework. The measures set an equity-linked cap for overseas lending balances, include parameters intended to encourage use of renminbi, and specify banks’ and corporates’ operational, reporting and data-submission obligations. Under the framework, an enterprise’s overseas lending balance cap is linked to its latest audited owners’ equity and is calculated as owners’ equity multiplied by a macroprudential adjustment coefficient, which has been increased from 0.5 to 0.6. The overseas lending balance calculation applies a currency conversion factor of 0.5 to foreign-currency lending, and the People’s Bank of China and the State Administration of Foreign Exchange may adjust the macroprudential coefficient and conversion factor in light of balance of payments conditions and macro-control needs. Enterprises must apply to the local State Administration of Foreign Exchange branch for registration within the balance cap, with registration covering items such as amount, interest rate, term and use of proceeds; approvals take into account creditworthiness and repayment capacity, past compliance, and relevant macro conditions. Ongoing requirements include timely balance of payments statistical declarations and reporting to relevant account and cross-border payment information systems, with local offices strengthening statistical monitoring and conducting off-site and on-site checks as needed. The notice mainly governs new overseas lending, while existing transactions can continue under their original registration if still valid and not subject to changes, extensions or cancellation. A transition period is provided before the document takes effect, and further policy Q&A and refinements to operational guidance are planned to support implementation.
Central Bank of the Republic of China 2026-03-20
People’s Bank of China and State Administration of Foreign Exchange unify domestic enterprises’ overseas lending rules and raise the macroprudential coefficient to 0.6
The People’s Bank of China and the State Administration of Foreign Exchange have issued new Administrative Measures for Domestic Enterprises’ Overseas Lending, unifying renminbi and foreign-currency lending rules under a macroprudential framework. The measures set an equity-linked cap for overseas lending, encourage renminbi use, and outline operational, reporting, and data-submission obligations. The framework includes a macroprudential adjustment coefficient, increased from 0.5 to 0.6, and requires enterprises to register with local authorities, with ongoing compliance and monitoring requirements.