China raises key parameter to facilitate cross-border financing

China on Tuesday raised a key parameter in its macro-prudential management to allow companies and financial institutions to borrow more foreign debt, an official statement said.

The macro-prudential adjustment parameter, a multiplier that decides the upper limit of outstanding cross-border financing an institution can have, has been revised to 1.25, up from 1 previously, according to a joint statement by the People's Bank of China and the State Administration of Foreign Exchange.

The upward revision aims to further improve the macro-prudential management of cross-border financing and guide enterprises and financial institutions to optimize their foreign debt structure, the statement added.