Cross-border renminbi loans from Hong Kong to Shenzhen's Qianhai district, a financial pilot zone, are now permissible, a new rule from the People's Bank of China in Shenzhen says.

But the loans that Shenzhen get from Hong Kong may be used only for Qianhai's development, National Business Daily reported.

According to the detailed rule, the borrowers must be companies registered in Qianhai, and information about the Hong Kong lenders must be given to the PBOC in Shenzhen.

The loans must be invested in industries identified in Qianhai's industries directory. The loan cannot be invested in securities and other financial derivatives, entrustment loans, wealth-management products, and property that are not used by the borrowers themselves.

The conditions are set up to prevent capital from Hong Kong flowing to regions other than Qianhai, analysts said.

The interest rates of the loans will be decided by the borrowers and lenders themselves, according to a rule issued ahead of the detailed rules.

The cross-border loan business will not be fully operational until the Qianhai banks carry out their own implementation rules.