Central Bank and State Administration of Foreign Exchange Issue "Management Measures for Domestic Enterprises' Overseas Loans"

China Internet Finance, March 20 — Today, the People’s Bank of China website shows that to thoroughly implement the spirit of the Fourth Plenary Session of the 20th Central Committee of the Communist Party and the “14th Five-Year” plan, and to enhance the openness of the capital account, meet the reasonable needs of enterprises for cross-border operational funds, on March 20, 2026, the People’s Bank of China and the State Administration of Foreign Exchange jointly issued the “Notice on Printing and Distributing” (hereinafter referred to as the “Notice”), further supporting and regulating domestic enterprises’ outbound lending activities.

The main contents of the “Notice” include: First, domestic enterprises’ RMB and foreign currency outbound lending business will be managed uniformly to facilitate enterprises to efficiently carry out foreign and domestic currency lending under the same rules. Second, outbound lending by domestic enterprises will be included in macro-prudential management, clarifying that the balance limit of outbound loans is linked to the owner’s equity, supporting enterprises to operate within the balance limit. Third, the macro-prudential adjustment factor for outbound loans by domestic enterprises has been raised from 0.5 to 0.6, overall increasing the outbound loan balance limit to better meet enterprises’ cross-border operational funding needs. Fourth, the management requirements for domestic banks and enterprises handling outbound loans and the use of funds are clarified to effectively prevent risks.

Next, the People’s Bank of China and the State Administration of Foreign Exchange will promote the steady implementation of the “Notice” and effectively play its positive role in serving the real economy, facilitating cross-border trade, and promoting investment and financing convenience.