On April 16, two Chinese authorities issued new policies, raising the overseas lending leverage ratio from 0.5 to 1.5 for foreign-funded and Sino-foreign joint-stock banks. The ratio for the Export-Import Bank of China was lifted from 3 to 3.5, greatly enhancing banks’ overseas lending capacity. The policies aim to support enterprises “going global”, expand cross-border investment and financing, and serve the high-quality development of the Belt and Road Initiative.

The adjustment will release over 100 billion yuan in long-term funds and reduce overseas financing costs for enterprises. Beneficiary sectors include banks, construction machinery, new energy equipment and overseas engineering contractors with high overseas business exposure. Recently, the RMB exchange rate has remained stable, with both onshore and offshore rates around 6.81, providing a sound currency environment for cross-border operations.

Meanwhile, the PBOC conducted 500 billion yuan of six-month reverse repos on April 15, maintaining ample liquidity. China’s cross-border payments rose 16% year-on-year in Q1, with stable market expectations. Analysts said the policy package supports high-level financial opening, enhances the global competitiveness of Chinese financial institutions, promotes steady growth in foreign trade and investment, and injects new momentum into economic growth.