China raises key parameter to facilitate cross-border financing

China on Thursday raised a key parameter in its macro-prudential management to expand companies and financial institutions' cross-border funding sources, an official statement said.

The macro-prudential adjustment parameter, a multiplier that decides the upper limit of outstanding cross-border financing available to an institution, has been revised from 1.25 to 1.5, 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 asset-liability structure, the statement added.