China eases limit for foreign debt

China increased the macro-prudential adjustment parameter for cross-border financing of corporates and financial institutions to 1.5 from 1.25 on Thursday, a move that experts said will help boost confidence in the renminbi, the Chinese currency.

The People's Bank of China, the country's central bank, and the State Administration of Foreign Exchange announced in a joint statement on Thursday the intention to raise the parameter, which allows Chinese companies and financial institutions to borrow more from overseas.

The move is aimed at expanding the cross-border funding sources of enterprises and financial institutions and encouraging them to optimize their asset-liability structure, the statement said.