PBoC is to lift onshore firms' overseas lending ceiling, and raising macroprudential ratio to 0.6 from 0.5

The PBoC's decision to lift the overseas lending ceiling for onshore firms signals a potential push for greater investment flows abroad, which could buoy the yuan (CNY) in the longer term. Coupled with the raising of the macroprudential ratio, this may indicate a proactive stance towards managing financial risks while still supporting growth. Market participants should watch for implications on risk sentiment and capital flows across regions, especially in fixed income markets.