(China, 27th) — China is tightening the approval process for overseas borrowing, as companies rush to raise funds faced with the pressure of about US$100 billion (RM395.25 billion) in bonds maturing this year.
Bloomberg reported on Monday (April 27), citing informed sources, that it now takes four to six months for China's National Development and Reform Commission to approve one-year or longer bond and loan quotas—about double the previous time frame. In some cases, the approval process can stretch as long as nine months, the sources said.
The sources added that since the end of 2025, regulators have started requiring companies to provide more details about debt repayment arrangements and uses of funds, resulting in longer approval timelines.
To avoid offshore debt defaults, Chinese companies are turning to issuing short-term bonds, making it more difficult to balance investment needs with cash flow management. According to Bloomberg, the higher threshold shows that the NDRC is stepping up efforts to curb the ballooning debts of weaker-rated companies and local government financing vehicles.
To avoid offshore debt defaults, Chinese companies are turning to issuing short-term bonds, making it more difficult to balance investment needs with cash flow management. According to Bloomberg, the higher threshold shows that the NDRC is stepping up efforts to curb the ballooning debts of weaker-rated companies and local government financing vehicles.
The sources noted that for some borrowers, the approval result might not be issued until as late as one month before their existing bonds are due, creating significant uncertainty for investors.