Shanghai Head Office of the People's Bank of China (“PBC”); all branches and business management departments of the PBC; all central sub-branches of the PBC in capital cities of provinces (autonomous regions); the central sub-branch of the PBC in Shenzhen; sub-bureaus and foreign exchange administration departments of the State Administration of Foreign Exchange (“SAFE) in all provinces, autonomous regions and municipalities directly under the Central Government, SAFE sub-bureaus in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo:

The PBC and the SAFE decide to lower the macro-prudential adjustment parameter for cross-border financing of companies to 1 from 1.25.

The Notice takes effect on the same date of its release. For companies that see their risk-weighted outstanding cross-border financing exceeds the upper limit due to the revision, they are allowed to hold cross-border financing contracts signed prior to the release of the Notice to maturity. Other matters in relation to macro-prudential management for cross-border financing shall still be subject to Notice of the People's Bank of China on Matters Concerning the Macro-Prudential Management for Full-covered Cross-border Financing (Yinfa No. 9 [2017]).

                                                  The People’s Bank of China
                     The State Administration of Foreign Exchange
                                                                      January 7, 2021