‘Equity capital dried up’: Chinese electronic brands reel under India’s regulatory hurdle

Chinese electronics giants like Oppo and Vivo are increasingly relying on loans from their group companies to fund Indian operations. This shift to external commercial borrowings (ECBs) stems from roadblocks in securing equity funding due to Press Note 3 (PN3) rules and regulatory actions, making bank loans difficult. The funding challenges are impacting expansion plans for some firms.