China unveils new rules to better regulate overseas lending
BEIJING -- Chinese financial regulators published new rules on overseas lending by domestic banks to facilitate the use of renminbi in such business and fend off risks in cross-border capital use on Saturday.
A unified policy framework that covers overseas loans in both renminbi and foreign currencies will be established, according to the document jointly released by the People's Bank of China and the State Administration of Foreign Exchange.
From March 1, the new rules will expand the scope of business of renminbi loans, include cross-border fund flows of overseas lending in the macro-prudential policy framework, and clarify requirements of the utilization of overseas loans.
The authorities expect that the new policy will improve the international services of domestic banks, prompt cross-border finance to better support the real economy, and facilitate cross-border trade and investment.
The new rules will have a three-month transition period.
