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":384037,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[4177,30771,138,607,219,199331,46725,72429,54414,111,139,95204,69,4421,199330,67589,5262,10130],"class_list":{"0":"post-384036","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-beijing","9":"tag-belt-and-road-initiative","10":"tag-business","11":"tag-china","12":"tag-economy","13":"tag-export-import-bank-of-china","14":"tag-fudan-university","15":"tag-gary-ng","16":"tag-ministry-of-commerce","17":"tag-new-zealand","18":"tag-newzealand","19":"tag-nomura","20":"tag-nz","21":"tag-peoples-bank-of-china","22":"tag-rmb","23":"tag-shao-yu","24":"tag-us-dollar","25":"tag-yuan"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/384036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=384036"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/384036\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/384037"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=384036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=384036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=384036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}