To further facilitate cross-border investment and financing by Macao-funded enterprises in Hengqin, the State Administration of Foreign Exchange (SAFE) has introduced relevant policy initiatives as we are celebrating the 20th anniversary of Macao's return to China.

The highlights are as follows: first, piloting for the external debt registration and management reform. Macao-funded enterprises in Hengqin will be allowed to register with local foreign exchange authorities their external debt that can be twice as much as net assets, and to go through outward and inward remittances, foreign exchange settlement and purchase processes with banks directly. Second, flexibly adjusting the borrowing model. Macao-funded enterprises in Hengqin can flexibly adjust their borrowing model based on their needs. For example, they can shift from the investment-registered capital difference model to the macro-prudential model. Third, loosening restrictions on currencies for external debt. Macao-funded enterprises in Hengqin will be allowed to use different currencies for contracting from currencies for withdrawals and repayment. Fourth, piloting outbound transfers of domestic credit assets. The scope of outbound transfers of domestic credit assets will be expanded in terms of players and channels. Fifth, facilitating the use of revenues under the capital account by Macao-funded enterprises in Hengqin. Macao-funded enterprises in Hengqin will not need to provide authenticity supporting materials to banks on a transaction-by-transaction basis when using revenues under the capital account for domestic payments. Sixth, further simplifying relevant transaction processes. Macao-funded enterprises in Hengqin can make combined payments based on payment order letter and application letter for domestic remittances for transactions under the capital account.

Next, the SAFE will promote the implementation of beneficial policies for Macao-funded enterprises to support the economic, trade, investment and financing growth in Macao.