MK sport headquarters of the People's Bank of China in Beijing Photo: IC" src="https://www.globaltimes.cn/Portals/0/attachment/2024/2024-02-21/6f0dc417-cef2-4ca1-8221-2bfcaed8f62e.jpeg" />

The headquarters of the People's Bank of China in Beijing Photo: IC

China has announced a new plan to further optimize the pilot policies for cross-border integrated foreign and domestic currency cash pooling for multinational corporations in selected areas. The plan aims to boost the country's high-level opening-up and streamline the collection and utilization of funds by multinational companies.

The People's Bank of China (PBC), together with the State Administration of Foreign Exchange (SAFE), recently announced the optimization of the pilot policies for cross-border integrated cash pooling of foreign and domestic currencies in 10 provinces and cities, including East China's Jiangsu Province, Shanghai, and Beijing, according to a statement released by PBC on Wednesday.

In the pilot areas, multinational corporations' domestic subsidiaries will be allowed to engage in cross-currency lending for current account cross-border payments, reducing financing costs. 

Multinational companies will also be permitted to determine the proportion of external debt and overseas lending based on macroprudential principles by themselves, simplifying the management of cross-border capital operations.

To enhance the cross-border income and expenditure facilitation for enterprises, the policy voices streamline the filing process, and the review of materials related to foreign payments and receipts. It will also allow multinational corporations' headquarters to manage centralized payments and receipts between domestic and foreign subsidiaries through their main domestic accounts to further improve the efficient use of funds.

Both the PBC and the SAFE will optimize cross-border capital management policies for multinational corporations, increase support for the facilitation of cross-border investment and financing, and better serve the high-quality development of the real economy.


Global Times