ICBC has recently succeeded in helping Yonyou Software Co., Ltd. register foreign debts in Zhongguancun Center Sub-office of the State Administration of Foreign Exchange (SAFE) for reference and open an exclusive account for the enterprise’s foreign debt capital. According to the SAFE’s policies of carrying out foreign exchange reform on the foreign debt macro-prudential management on a trial basis in core area of the Zhongguancun National Demonstration Zone, Yonyou Software can directly obtain loans in foreign currency from the overseas and then change the loans into RMB, which can not only significantly reduce financing costs, but also meet its business demands. It is the first pilot business in connection with the foreign debt macro-prudential management reform handled in China after implementing the policies.

According to policies of the pilot foreign exchange reform on foreign debt macro-prudential management, high-tech companies meeting standards in the core area of Zhongguancun can directly bring in global low-cost funds and enjoy a more relaxed financing environment for development. The pilot policy features two highlights. First, the policy allows pilot Chinese enterprises to borrow foreign debts which can be two times their net assets (all debts of an enterprise are not allowed to exceed 75% of its total assets), which has broadened financing channels of the Chinese high-tech enterprises. Second, the policy lifts restrictions that foreign debts borrowed by pilot Chinese enterprises can not be settled for use, which enables those enterprises to obtain the equal national treatment as their foreign counterparts and helps build a business environment of fair competition.

Industry insiders said that the policy of the pilot foreign exchange reform on foreign debt macro-prudential management has made it possible for enterprises to obtain lower-cost funds through foreign debts, which will help further ease the financing difficulties of small and medium-sized, high-tech private enterprises and promote upgrading and development of domestic high-tech enterprises.