PBC and SAFE Issue Administrative Measures for Overseas Lending by Domestic Enterprises

On March 13, 2026, the People’s Bank of China (PBC) and the State Administration of Foreign Exchange (SAFE) issued the Notice on Printing and Distributing the Administrative Measures for Overseas Lending by Domestic Enterprises (the “Measures”), to take effect on April 20, 2026.

The Measures adopt an integrated macro-prudential administration regime covering both Renminbi and foreign currencies. The upper limit of the balance of overseas lending shall be calculated as “the latest audited owners’ equity × the macro-prudential adjustment parameter (0.6)”, and foreign currency shall be converted on the basis of a currency conversion factor (0.5). Overseas lending shall be conducted by domestic non-financial enterprises that have been lawfully established for at least one year, have no major violations of laws or regulations in recent years, and maintain a direct or indirect equity relationship with the borrower. Such lending must use their own funds and be extended to eligible overseas enterprises. The term of the loan shall generally be between six months and five years, and the interest rate and term shall comply with the principle of commercial reasonableness. The amount extended to and the outstanding balance for the same borrower shall be commensurate with the borrower’s actual operating conditions. When conducting such business, registration must be completed with the local branch of SAFE in the place of registration prior to the lending. Any modification, extension, change of parties involved, or debt-to-equity swap shall require corresponding modification or deregistration procedures. Funds in both domestic and foreign currencies shall be received and paid through a dedicated overseas lending account.

The Measures explicitly stipulate that overseas lending shall not be used to circumvent regulatory policies on overseas direct investment or securities investment, nor shall it violate the provisions on anti-money laundering, counter-terrorist financing, and anti-tax evasion. In addition, external claims arising from the performance of internal guarantees for external loans are to be incorporated into the unified management of the overseas lending balance. Specific provisions are also made regarding the statistical reporting obligations of lenders and handling banks, requirements for reporting abnormalities, and liabilities for violations. The relevant regulatory documents of 2009, 2016, and 2021 are simultaneously repealed.