China Revs Up Support for Offshore Yuan Funding With New Rules

China’s central bank announced a new set of rules to facilitate cross-border yuan funding between local and foreign financial institutions, paving the way to boost the currency’s usage abroad.

The People’s Bank of China listed a raft of rules for offshore yuan funding including bond repurchases and interbank loans, according to its statement late on Thursday. Under the framework, local banks’ overseas yuan lending limits will be linked to their capital conditions and the PBOC can fine-tune those caps to keep risks in check.