Illustration: iStock
Illustration: iStock

The National Development and Reform Commission said it will further expand the scale of overseas financing, allowing foreign banks in China to borrow more debt in accordance with the needs of the economic situation, 21st Century Business Herald reported.

Foreign banks and Sino-foreign joint venture banks in China are required to report their medium and long-term foreign debt borrowing scale for the year ahead. And NDRC may raise the quota.

In terms of the total amount, domestic foreign banks still share a small scale when it comes to overseas financing.

In 2016, the NDRC approved 96 foreign banks in China to borrow US$20 billion yuan in foreign debt, mainly via the capital increase of parent companies and borrowing from their head offices overseas.

China is actively promoting the opening up of its financial sector, but analysts remain skeptical until the limit is significantly boosted for foreign debt among domestic foreign banks.