Cross-border capital management for multinational corporations has entered a new phase of facilitation. The Circular on Matters Concerning the Centralized Operation of Domestic and Foreign Currency Cross-border Funds of Multinational Corporations, jointly issued by the People’s Bank of China and the State Administration of Foreign Exchange (SAFE), took effect on September 14. The business of centralized operation of domestic and foreign currency cross-border funds of multinational corporations (hereinafter referred to as the “cash pool business”) has been rolled out nationwide from pilot regions.

Reporters from the Shanghai Securities News have found that since the policy came into force, the first batches of cases have been successively launched in Tianjin, Zhejiang, Fujian, Shandong, Chongqing and other places. The “living water” of cross-border capital is flowing in at an accelerated pace to support enterprises’ global layout. Meanwhile, since September, multiple regions have launched or optimized pilot programs for integrated domestic and foreign currency cash pool business, sending continuous signals of greater facilitation in cross-border capital management.

First Batch of Businesses Launched in Multiple Regions

More Efficient Cross-border Capital Allocation

On September 14, two multinational groups in Tianjin completed business filing, marking the successful launch of the cash pool business in Tianjin. Reporters learned from the Tianjin Branch of SAFE that both multinational corporations participating in the launch have multiple affiliate enterprises joining the cash pool, with a combined upper limit of nearly RMB 100 billion for fund pooling.

Take one group as an example. Its affiliated enterprises in the pool are mainly engaged in large-scale overseas agricultural planting and cross-border import and export trade of agricultural and sideline products. Through the cash pool business, the enterprise can coordinate and allocate domestic and overseas operating funds in light of trade cycles, and improve the group’s cross-border capital operation and management capacity.

Beyond Tianjin, new progress has been made in Zhejiang and Fujian. On September 14, Hengshen Group completed cash pool business filing, becoming one of Fujian’s first enterprises to carry out the business under the new rules. On the same day, Wankai New Materials Co., Ltd. launched Zhejiang’s first policy-based cash pool transaction. Right after completing the filing, the company processed its first centralized receipt of foreign exchange under current account items on the same day, realizing simultaneous rollout from filing to actual business execution.

Looking back, the policy on the centralized operation of domestic and foreign currency cross-border funds for multinational corporations was open for public comments from July 25 to August 25, 2025. After full review and adoption of feedback, it was officially released on August 14, 2026 and implemented on September 14, 2026. Following wide recognition of the earlier pilots among enterprises, the cash pool business can now benefit more market entities and further boost trade and investment facilitation for real-economy enterprises.

Cash Pools Cut Costs and Boost Efficiency for Enterprises Going Global

For multinational enterprises, cash pool business delivers systematic upgrades to capital management models.

Wang Zhiyi, President of the Cross-border Finance Research Institute, told reporters that a cash pool is not merely a “tool for cross-border fund transfer”, but an important financial instrument enabling multinational corporations to achieve intensive capital management. Through cash pools, enterprises can centrally manage external debt quotas, conduct overseas lending to lower overseas financing costs, and improve the efficiency of receipts and payments under trade in services. They may also adopt net settlement to reduce transaction volumes and cut exchange costs.

Cash pools are particularly valuable for enterprises expanding overseas. Wang Zhiyi explained that as multinational groups keep adding overseas subsidiaries, production bases and sales networks, they often face high overseas financing costs, idle domestic capital and scattered cross-border receipts and payments among member firms. With cash pools, enterprises can centrally manage external debt and overseas lending quotas, and coordinate domestic, overseas, local and foreign currency funds within the group.

A senior official at Hengshen Group stated that cash pools are highly compatible with the group’s multi-base, networked industrial layout. They further strengthen global industrial linkage and cross-border coordinated operation capacity, supporting the group’s international trade, local overseas operations and coordinated development of global industrial chains.

Continuous Signals of Facilitated Cross-border Capital Flows

Recently, clear signals of ongoing facilitation in cross-border capital management have been released. Reporters noted that Hebei, Shandong, Sichuan and other provinces have launched or optimized pilot programs for integrated domestic and foreign currency cash pool business.

Since September, the Hebei, Shandong and Sichuan Branches of SAFE have solicited public opinions on the draft administrative rules for integrated domestic and foreign currency cash pool pilots within their jurisdictions. Notably, many regions have shortened the public comment period to 7 working days to help market entities access policy dividends at an earlier date.

Industry observers believe that with the growth of RMB cross-border transactions in recent years, a major priority of foreign exchange work is to further advance the management of domestic and foreign currency cross-border funds. SAFE data shows that in the first half of this year, banks’ foreign-related receipts and payments on behalf of clients totaled USD 9.2 trillion, up 21% year-on-year and hitting a record high for the same period. Among this total, the RMB share in cross-border receipts and payments stood at 52.9%, 1.3 percentage points higher than the full-year figure for 2025.

“Foreign exchange management may enter a new stage of coordinated domestic and foreign currency governance,” said Li Liuyang, foreign exchange research expert at China International Capital Corporation (CICC). Given that the RMB accounts for more than half of foreign-related payments and receipts, managing only foreign exchange cannot capture the full picture of cross-border capital flows. The scope of oversight may expand to both domestic and foreign currencies, shifting management focus from currency types and business categories to market entities, while facilitation will be determined by corporate credit rather than business type.

Li Bin, Deputy Administrator of SAFE, said at a recent press conference held by the State Council Information Office that the People’s Bank of China and SAFE will push forward iterative upgrades to the integrated domestic and foreign currency cash pool policy for multinational corporations.

Source: Shanghai Securities News