The People's Bank of China (PBOC) and China's State Administration of Foreign Exchange (SAFE) jointly issued a notice extending the integrated RMB and foreign currency cash pooling scheme for multinational corporations nationwide, building on earlier pilot experience. The arrangements take effect from the date of issuance. The notice establishes a unified policy framework covering both RMB and foreign currency cash pooling and encourages use of RMB. It assigns local SAFE branches to act as a single service window for corporate filings and registrations, and it facilitates cross-border cash concentration and transfers by setting consolidated quotas for external debt and overseas lending linked to the owners’ equity of member entities, allowing multinationals to deploy funds within those limits. It also sets operational standards for participating multinationals and cooperating banks and requires local PBOC and SAFE offices to strengthen statistical monitoring and conduct off-site and on-site checks to manage cross-border capital flow risks. PBOC and SAFE indicated they will continue refining multinational cross-border cash management policies to further improve the facilitation of cross-border trade and investment and financing.
Central Bank of the Republic of China 2025-12-26
People's Bank of China and China's State Administration of Foreign Exchange roll out nationwide integrated RMB and foreign currency cash pooling for multinationals
The People's Bank of China and the State Administration of Foreign Exchange have extended the integrated RMB and foreign currency cash pooling scheme for multinational corporations nationwide. The notice establishes a unified policy framework, encourages RMB use, and sets operational standards for multinationals and banks. Local SAFE branches will serve as a single service window, and local offices will enhance monitoring to manage cross-border capital flow risks.