Issued by: The Shanghai Branch of the State Administration of Foreign Exchange
Release Date: January 23, 2025
Links: https://www.safe.gov.cn/shanghai/2025/0123/2208.html

The "Regulations" further upgrade the integrated RMB and foreign currency cash pooling policies for multinational corporations, improving the convenience of cross-border fund operation and management. The main contents include:
1. Allowing multinational corporations to directly conduct relevant business based on payment instructions within the limits of their foreign loan and overseas lending quotas.

2. Permitting the lead enterprise of a multinational corporation to handle centralized collection and payment on behalf of its overseas member enterprises in transactions with domestic member enterprises or overseas entities.

3. Allowing multinational corporations to consolidate portions of their foreign loan and overseas lending quotas.

4. Permitting cross-currency borrowing and lending between domestic member enterprises of a multinational corporation for cross-border payments under current account transactions.

5. Delegating the handling of capital account changes not involving foreign loan and overseas lending quotas, as well as changes to the name of the lead enterprise or member enterprises, to cooperative banks.

6. Pilot enterprises must complete the cleanup of funds and accounts related to other cross-border fund concentration operations or two-way RMB fund pool activities within six months after obtaining the filing. After the cleanup, they may only engage in the cash pooling operations specified in these regulations.