To deepen the financial cooperation between China's Guangdong, Hong Kong and Macao and realize cross-border investment facilitation, the Guangzhou Branch of the People's Bank of China issued the Provisional Regulations of Cross-border RMB Loan Pilot Management program in Nansha and Hengqin on July 13, and launched the cross-border RMB loan service.
According to the regulations, registered and operating enterprises in Nansha and Hengqin, and enterprises that invest in Nansha and Hengqin key projects from Guangdong, are allowed to borrow money from Hong Kong and Macao banks. Additionally, the money can be used both inside and outside Nansha and Hengqin, for purposes including the two areas' production and operation, project construction and the building of overseas projects.
The time limit and interest rate of the cross-border RMB loans can be reasonably determined by both lenders and borrowers in accordance with commercial principles. The Guangzhou Branch of the People's Bank of China will figure out the cross-border RMB loan business scale in Nansha and Hengqin and practice the balance management accordingly, too.
The cross-border RMB loan pilot program in Nansha and Hengqin boasts many benefits, including helping Chinese enterprises open up channels for cross-border financing, reducing financing costs, fostering industrial upgrading and the steady growth of foreign trade, deepening financial cooperation among Guangdong, Hong Kong and Macao, promoting the One Belt And One Road strategy and lastly, propelling RMB internationalization and capital account convertibility.
By Hengqin.gov.cn
