FTZ firms can borrow from SAR bank loans

Qualified companies in the Nansha and Hengqin free trade zones can now borrow money from banks in Hong Kong and Macau, the Guangzhou branch of the People’s Bank of China announced on Monday.
Under this cross-border renminbi loan business pilot scheme, companies and banks can determine their own loan period and interest rate.
Xinhua reported that companies can only use the fund to support production and construction projects within the FTZs or for their offshore business. The policy can help Chinese enterprises access cross-border financing channels and lower their financing cost, a representative of the PBoC said.
The measure is expected to support offshore renminbi businesses in Hong Kong and Macau, and better promote financial services in the Pan-Pearl River Delta area, echoing the “One Belt, One Road” strategy. According to the People’s Bank of China, the policy can generate useful opportunities to promote the internationalization of renminbi and the conversion of capital accounts.