China will expand a cross-border cash pooling pilot scheme nationwide, allowing more multinational companies to centrally manage their cross-border renminbi and foreign-currency funds, People’s Bank of China and the State Administration of Foreign Exchange says.
Their notice, issued on Friday, said the new policy would take effect on September 14.
Under the programme, multinational companies can pool the foreign debt and overseas lending quotas of their member companies, independently determine the proportion of funds to be centralised and manage renminbi and foreign-currency funds through the same account.
An official with the foreign exchange regulator said that would enable funds to be
allocated at the group level while allowing member companies greater flexibility.
The programme, called the centralised operation and management of cross-border RMB and foreign currency funds, was launched as a pilot project in Beijing and Guangdong Province in 2023. By the end of June 2026, more than 260 multinational companies had registered for the programme, benefiting more than 5 500 member companies at home and abroad.
The notice further streamlines registration procedures by introducing a single-window mechanism at branches of the foreign exchange regulator, while allowing cooperating banks to handle certain registration changes.
It also specifies operational requirements for ongoing and ex-post supervision to
guard against risks associated with cross-border capital flows. — Xinhua
- China will expand a cross-border cash pooling pilot scheme nationwide, allowing more multinational companies to centrally manage their cross-border renminbi and foreign-currency funds, People’s Bank of China and the State Administration of Foreign Exchange says.
- Their notice, issued on Friday, said the new policy would take effect on September 14.
- Under the programme, multinational companies can pool the foreign debt and overseas lending quotas of their member companies, independently determine the proportion of funds to be centralised and manage renminbi and foreign-currency funds through the same account.
- An official with the foreign exchange regulator said that would enable funds to be allocated at the group level while allowing member companies greater flexibility.
- The programme, called the centralised operation and management of cross-border RMB and foreign currency funds, was launched as a pilot project in Beijing and Guangdong Province in 2023.
