China to better manage cross-border capital flow

China's central bank said it will introduce a "counter-cyclical coefficient" to better manage capital flow of the Chinese yuan.

Commercial bank financing business will be under the regulation, the People's Bank of China (PBOC) said on Friday.

"The upper limit of financing will be determined by a bank's balance of deposits and a counter-cyclical coefficient, which currently stands at 3 percent."

The PBOC said the move will improve financing and support cross-border business.