China is making it harder for some state-owned companies to borrow overseas, expanding a campaign to rein in local government debt risks, according to people familiar with the matter.
This move is part of a broader effort by Chinese authorities to control and reduce financial risks associated with local government debt. By tightening borrowing restrictions on state-owned enterprises, the government aims to enhance financial stability and promote sustainable economic growth.
The development signals increased scrutiny on outbound financing activities by state-owned entities, reflecting growing concerns over debt levels and currency risks in international markets. Further details on the implementation and impact of these measures are expected as the campaign progresses.
https://www.bloomberg.com/news/articles/2025-11-11/china-tightens-rules-for-state-owned-firms-to-add-foreign-debt