The Zhitong Finance App learned that on October 23, the State Administration of Foreign Exchange solicited public comments on the “Notice on Matters Related to Further Optimizing Cross-border Investment and Financing Facilitation Policies”. Among them, it is proposed to expand the high-level openness of cross-border financing. The first is to expand the scope of cross-border financing facilitation entities. Technology enterprises such as innovative small and medium-sized enterprises, individual manufacturing champions, science reform demonstration enterprises, (national) enterprise technology centers, smart factory gradient cultivation systems (advanced level and above), and enterprises on the Ministry of Agriculture and Rural Affairs list of key laboratories can borrow foreign debt within an amount not exceeding 10 million US dollars. The second is to lower the risk conversion factor coefficient for loan categories of related enterprises to facilitate enterprises to allocate capital more flexibly. Third, promote a green foreign debt policy throughout the country. Under the macroprudential management model, the category risk conversion factor for eligible enterprises that borrow foreign debt for green development or low-carbon transformation projects has been lowered from 1 to 0.5. Fourth, the country promotes financial leasing parent and subsidiary companies to share foreign debt lines. Promote financial leasing parent and subsidiary companies across the country to share foreign debt lines. Under the macroprudential management model, when a subsidiary of a financial leasing company's own external debt amount is insufficient, it can use the amount of external debt not used by its parent company to borrow foreign debt.

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