State Administration of Foreign Exchange: Further optimize policies for facilitating cross-border investment and financing

Zhitong Finance APP has learned that on October 23, the State Administration of Foreign Exchange publicly solicited opinions on the "Notice on Matters Concerning Further Optimizing Policies for Facilitating Cross-Border Investment and Financing." Among the proposals: expand high-level opening-up of cross-border financing. First, expand the scope of entities eligible for cross-border financing facilitation. Technology enterprises such as innovative small and medium-sized enterprises, manufacturing single-champion enterprises, science and technology reform demonstration enterprises, (national) enterprise technology centers, enterprises within the intelligent factory tiered cultivation system (advanced level and above), and enterprises on the Ministry of Agriculture and Rural Affairs key laboratory list may borrow external debt within a quota of no more than the equivalent of USD 10 million. Second, lower the risk conversion factor coefficient for the borrowing category of affiliated enterprises, making it easier for enterprises to allocate funds more flexibly. Third, promote the green external debt policy nationwide. Under the macroprudential management model, for eligible enterprises borrowing external debt for green development or low-carbon transition projects, the category risk conversion factor will be lowered from 1 to 0.5. Fourth, promote nationwide the sharing of external debt quotas between financial leasing parent companies and subsidiaries. Promote nationwide the sharing of external debt quotas between financial leasing parent companies and subsidiaries. Under the macroprudential management model, when a financial leasing company's subsidiary has insufficient external debt quota of its own, it may use its parent company's unused external debt quota to borrow external debt.