China Offshore Financing Tightens as Approval Delays Increase

China offshore financing conditions are tightening as regulators lengthen approval timelines for bonds and loan quotas with maturities of one year or more.

Reviews now take four to six months, with some extending up to nine months, as authorities increase scrutiny on repayment plans and use of proceeds.

The shift comes as companies face around USD100bn in offshore bond maturities this year.

To avoid delays, some firms are turning to shorter-term issuance below 12 months, which does not require approval, with such issuance reaching at least USD2.3bn so far this year.

The tightening of China offshore financing is expected to increase refinancing pressure, particularly in 2027 when maturities are forecast to reach USD131bn.