The People's Bank of China and China's State Administration of Foreign Exchange expanded the pilot programme for multinational companies’ integrated RMB and foreign currency cash pools to 16 provinces and cities, aiming to make cross-border treasury management and the centralised use of group funds more convenient. The expanded pilot covers Tianjin, Hebei, Inner Mongolia, Heilongjiang, Anhui, Fujian, Shandong, Hubei, Hunan, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Xinjiang and Xiamen. Key measures include allowing multinational groups to determine centralisation ratios for external debt and overseas lending under macro-prudential principles, enabling overseas member entities’ consolidated receipts and payments in RMB and foreign currency via an onshore master cash pool account, further facilitating RMB-denominated cross-border receipts and payments, and permitting banks to directly process capital account changes and similar items that do not involve external debt or overseas lending quotas. The central bank and SAFE indicated they will continue to推进 institutional opening in the foreign exchange regime and further enhance and broaden policies for multinationals’ cross-border funds management to support trade and investment facilitation.
Central Bank of the Republic of China 2025-03-13
People's Bank of China and China's State Administration of Foreign Exchange expand multinationals’ integrated RMB and foreign currency cash pooling pilot across 16 regions
The People's Bank of China and the State Administration of Foreign Exchange have expanded the pilot programme for multinational companies' integrated RMB and foreign currency cash pools to 16 provinces and cities. This initiative aims to streamline cross-border treasury management and centralised fund use, allowing multinational groups to set centralisation ratios for external debt and overseas lending under macro-prudential principles. Authorities plan to enhance policies for cross-border fund management to support trade and investment facilitation.