China plans cross-border financing pilot policies for tech SMEs

China is set to make cross-border financing facilitation pilot policies available to technological small and medium-sized enterprises to boost innovation, according to the State Administration of Foreign Exchange.

SAFE released a set of draft measures on Monday that proposed to allow eligible technological SMEs in certain regions — including Tianjin, Shanghai and Jiangsu province — to borrow foreign debt, giving them the autonomy to decide up to a limit of $10 million.

Technological SMEs in other regions will be eligible to borrow overseas within a $5 million quota.

The measures, soliciting public opinion through Aug 2, also proposed to facilitate the use of foreign currencies raised by domestic companies from overseas listings, along with other steps to further facilitate cross-border trade and investment.