An undated file photo shows a worker counts the U.S. dollars at a bank in Qionghai city, south China’s Hainan province. [Photo/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, according to a notice issued Friday.
The notice, jointly released by the People’s Bank of China and the State Administration of Foreign Exchange, said the new policy will take effect on Sept. 14.
Under the program, multinational companies can pool the foreign debt and overseas lending quotas of their member companies, independently determine the proportion of funds to be centralized, and manage renminbi and foreign-currency funds through the same account.
This will enable funds to be allocated at the group level while allowing member companies greater flexibility in their use, according to an official with the foreign exchange regulator.
The program, called the centralized operation and management of cross-border RMB and foreign currency funds, was launched on a pilot basis in Beijing and Guangdong Province in 2023. By the end of June 2026, more than 260 multinational companies had registered for the program, benefiting over 5,500 member companies at home and abroad.
The notice further streamlines registration procedures by introducing a single-window mechanism at local branches of the foreign exchange regulator, while allowing cooperating banks to handle certain registration changes.
It also specifies operational rules and requirements for ongoing and ex-post supervision to guard against risks associated with cross-border capital flows.
In recent years, China has developed two versions of cross-border cash management programs for multinational companies. The integrated RMB and foreign currency cash pooling program mainly serves large multinationals, with higher entry thresholds but greater flexibility and higher transfer ceilings.
The centralized operation and management of cross-border RMB and foreign currency funds targets a broader range of multinationals, featuring lower entry thresholds and simpler procedures, but lower transfer ceilings.
