China will expand cash pooling services for multinational companies to integrate domestic and foreign exchange management more widely, the country’s monetary authorities said Friday.
Shanghai, Guangdong, Shaanxi and some other regions will be added to the pilot program to facilitate the use and management of cross-border capital, the People’s Bank of China and the State Administration of Foreign Exchange said.
New policies introduced in the program include increasing the number of pilot areas and companies and allowing multinational corporations to handle centralized receipts and payments of domestic and foreign currencies in China for their overseas subsidiaries. In addition, the authorities will further streamline yuan-denominated cross-border receipts and payments for multinationals.
The pilot cash pooling program originated in March 2021 in the Chinese capital Beijing and the southern economic powerhouse Shenzhen. Since then, the program has managed nearly $50 billion in cross-border capital. The two state bodies added that they would facilitate cross-border trade, investment and financing and create a market-oriented, law-based and internationalized business environment.
(Coverage via GVB)
Source(s): Xinhua News Agency