Beijing has raised the limit on banks\u2019 overseas lending \u2013 a move that analysts say will support Chinese firms in outbound investment expansions while helping to stabilise the yuan.<\/p>\n
Regulators raised the overseas-loan leverage ratio for foreign banks in China and their joint ventures with Chinese lenders from 0.5 to 1.5 on Wednesday, according to a statement published by the central bank and the foreign exchange regulator.<\/p>\n
In a separate statement, the regulators said that the new rules would better address the financing needs of firms expanding abroad, as overseas-loan volumes have grown steadily and some banks have raised concerns about lending limits.<\/p>\n
\u201cThe demand should be strong as outward FDI (foreign direct investment) has so far been popular to mitigate the impact from lower nominal growth in China,\u201d said Gary Ng, a senior economist at Natixis Corporate and Investment Bank.<\/p>\n
He said that, in addition to supporting Chinese firms in going global, the rules would also help \u201cexpand geopolitical influence through financing\u201d.<\/p>\n
A growing number of Chinese firms have looked to overseas markets for new growth opportunities in recent years, as they continue to face sluggish demand and intense competition at home.<\/p>\n
But overseas lending had likely been reaching its limits at some institutions, noted Shao Yu, chief economist with the Sci-tech Innovation Centre at Fudan University\u2019s School of Management.<\/p>\n","protected":false},"excerpt":{"rendered":"Beijing has raised the limit on banks\u2019 overseas lending \u2013 a move that analysts say will support Chinese…\n","protected":false},"author":2,"featured_media":439333,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[1793,22081,79,381,179,18,194722,2421,148606,19,17,1488,23892,2711,106610,79948,2708,28023],"class_list":["post-439332","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-beijing","tag-belt-and-road-initiative","tag-business","tag-china","tag-economy","tag-eire","tag-export-import-bank-of-china","tag-fudan-university","tag-gary-ng","tag-ie","tag-ireland","tag-ministry-of-commerce","tag-nomura","tag-peoples-bank-of-china","tag-rmb","tag-shao-yu","tag-us-dollar","tag-yuan"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116418120736615032","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/439332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=439332"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/439332\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/439333"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=439332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=439332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=439332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}