China to expand cash-pooling program to integrate currency management-Xinhua

China to expand cash-pooling program to integrate currency management

Source: Xinhua

Editor: huaxia

2022-07-22 21:44:28

BEIJING, July 22 (Xinhua) -- China will expand cash-pooling services for multinational companies to integrate domestic and foreign currency management on a larger scale, the country's monetary authorities said Friday.

Shanghai, Guangdong, Shaanxi and some other regions will be added to this pilot program to facilitate the use and management of cross-border capital, said the People's Bank of China and the State Administration of Foreign Exchange.

New policies introduced into the program include increasing pilot areas and companies, allowing multinationals to handle centralized receipts and payments of domestic and foreign currencies in China for their overseas subsidiaries, and further streamlining yuan-denominated cross-border receipts and payments for multinationals.

The pilot cash-pooling program originated in the Chinese capital Beijing and the southern economic powerhouse Shenzhen in March 2021. Cross-border capital managed by the program has amounted to nearly 50 billion U.S. dollars since then.

The two state organs added that they would facilitate cross-border trade, investment, and financing and create a market-oriented, law-based, and internationalized business environment.