New move to finance overseas operations

China is broadening channels available for domestic companies to finance their overseas operations to facilitate outbound investment, local media reported on Friday.

The State Administration of Foreign Exchange (SAFE) issued a document that allows domestic enterprises to inject foreign currency-denominated loans they got in China into their overseas subsidiaries, effective July 1, the Shanghai Securities News reported.

The move aims to address the financing difficulties facing enterprises when they expand overseas.

Previously, companies could only finance their overseas firms with foreign currencies generated by their own business operations, purchased with yuan, or from other foreign capital pools approved by the SAFE, according to regulatory rules published in 2009.

Additionally, according to the new regulations, individuals can provide external guarantees for the enterprises' outbound financing as co-surety.