China has raised a key parameter in its macro-prudential management to allow companies and financial institutions to borrow more foreign debt, an official statement says.
A joint statement by the People’s Bank of China and the State Administration of Foreign Exchange said this on Tuesday.
The statement said that the macro-prudential adjustment parameter had been revised to 1.25, up from one previously used.
The statement said the upward review was aimed at further improving the macro-prudential management of cross-border financing.
It said the upward review was also to guide enterprises and financial institutions to optimise their foreign debt structure.
“The macro-prudential adjustment parameter, a multiplier that decides the upper limit of outstanding cross-border financing an institution has been revised to 1.25, up from 1 previously,’’ it said.
