MNI BRIEF: China Expands Tech SME Foreign Debt Scheme

China’s State Administration of Foreign Exchange (SAFE) announced Monday that eligible high-tech enterprises and technology-focused small and medium-sized enterprises (SMEs) across the country may now access foreign debt financing of up to USD10 million.

Certain companies designated by relevant authorities may borrow up to USD20 million, the notice added.  SAFE said the new policy replaces an earlier notice from 2022 that restricted the program to firms in pilot zones only.

China’s A-share rally could further lift the Shanghai Composite and CSI 300 past decade highs, but some technology stocks have surged on speculation, advisors recently told MNI. (See MNI: China Stocks To Test Higher Levels)