FINANCE

China Proposes Easing Borrowing Rules for Foreign-Invested Firms

Published: Oct. 26, 2026 3:22 p.m. GMT+8

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China’s foreign exchange regulator has proposed cutting the risk conversion factor for eligible foreign-invested companies borrowing from overseas affiliates, freeing up cross-border borrowing capacity.

The State Administration of Foreign Exchange published a draft notice Friday proposing 11 measures to facilitate cross-border investment and financing. Public feedback is due by Nov. 22.

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SAFE proposes halving risk conversion factor to 0.5 for eligible foreign-invested and green/low-carbon borrowers, freeing cross-border borrowing capacity.
Draft notice, published Friday, seeks public feedback by Nov. 22, with 11 measures to facilitate cross-border investment and financing.
Proposal expands $10 million foreign debt eligibility to innovative SMEs and manufacturing champions.

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