Chinese authorities are considering introducing a quota-based system to allow mainland companies to borrow yuan-denominated funds outside China’s borders and remit funds domestically, The Wall Street Journal reported, citing unnamed sources. Chinese authorities began allowing mainland-based, non-financial companies to sell renminbi (or “dim sum”) bonds in Hong Kong late last year but have yet to expand the program beyond the territory. Analysts said authorities are aiming to expand cross-border capital flows but remain wary of a potential shock to domestic economy from capital inflows. It is not yet clear whether funds would be remitted in the form of long- or short-term debt; thus far, authorities have restricted the use of short-term bonds in remittances to dampen speculative capital inflows. The program could also help guide China towards a market-based interest-rate system by enhancing the ability of Chinese companies to take out loans offshore, where capital is priced in line with market demand and supply, analysts said.