Financing risk participation in the context of overseas loans means that domestic banks, as risk participating banks, participate in the credit risk of all or part of overseas debtors under international settlement and trade financing.

It shall not be used for securities investment or repayment of overseas debts and foreign loans under domestic insurance. It shall not be used for fictitious trade background transactions or other forms of speculative arbitrage transactions. It is not allowed to transfer funds back to China for use by lending funds or equity investment to China. In principle, overseas loan funds shall be used for related expenses within the business scope of overseas enterprises.