Quantcast
China central bank reduces leeway for firms to borrow abroad - Metro US

China central bank reduces leeway for firms to borrow abroad

Man wearing a mask walks past the headquarters of the People's Bank of China, the central bank, in Beijing

BEIJING (Reuters) – China’s central bank said on Thursday it had tightened the way it assesses cross-border financing risks to make it harder for domestic firms to raise funds in overseas markets.

The People’s Bank of China (PBOC) lowered a parameter on cross-border corporate financing under its macro-prudential assessments to 1 from 1.25, it said in a statement on its website.

That reversed a move in March when the central bank eased conditions allowing domestic coronavirus-hit firms to conduct overseas funding more easily.

China has seen a steady rebound from the coronavirus crisis, with manufacturing activity sustaining its recovery to pre-pandemic levels.

The string of upbeat data has led economists to forecast some winding down in 2021 of China’s easing measures introduced since the start of the pandemic.

(Reporting by Meg Shen; editing by John Stonestreet, Kirsten Donovan)

More from our Sister Sites