FINANCE

Chinese Province Tightens Rules on Offshore Bond Issuance by State Firms

Published: Jan. 14, 2026 6:02 p.m. GMT+8

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China’s Henan province has tightened controls on state-owned enterprises (SOEs) issuing offshore bonds, moving to close a loophole that allowed them to borrow abroad with limited oversight.

Under new rules recently released by the provincial government, local SOEs must secure shareholder approval before issuing offshore bonds, including short-dated bonds that had previously avoided review by the National Development and Reform Commission (NDRC).

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Henan province now requires SOEs to get shareholder approval and conduct feasibility studies before issuing offshore bonds, targeting “364-day offshore bonds.”
Executives involved in non-compliant borrowing face lifetime accountability under the new regulations.
From June to August 20, 2025, Henan-based LGFVs issued 11 short-term offshore bonds, totaling about 5 billion yuan ($717 million).

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