China Scraps Overseas Debt Quotas as Capital Outflows Worsen
- Quotas for corporate overseas bond sales and loan removed
- Dollar bond sales from Chinese firms fell 17 percent in 2015
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China removed quotas for companies to raise funds in the overseas bond and loan markets, as it tries to staunch capital outflows spurred by a currency devaluation.
The National Development and Reform Commission, China’s top planning agency, will remove quota approval processes for foreign currency or yuan notes and loans with a term of more than one year, according to a statement on its website Wednesday. Companies are only required to register with the regulator, the statement said. Previously, the NDRC reviewed each firm’s application for foreign borrowing, according to Moody’s Investors Service.