BEIJING, May 22 (Xinhua) -- PBOC, the Chinese central bank, and the SAFE, the foreign exchange regulator, decided to pilot policies for optimizing centralized operation and management of the cross-border capital pools of local and foreign currencies for multinational companies (MNCs) in Beijing, Guangdong Province and Shenzhen, showed a statement released by the central bank on May 19.
The People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) took the move to enhance coordination between the domestic and foreign markets and resources and better develop the headquarters economy.
Under the decision, existing policies for centralized operation and management of cross-border capital pools of local and foreign currencies for MNCs are streamlined to benefit more businesses and MNCs are permitted to independently decide the pooling ratio of their foreign debt and overseas lending based on the macroprudential principles.
MNCs are also encouraged to use Renminbi in operating their cross-border capital pools in a centralized way. Related record filing procedures and capital utilization related materials approval are simplified at the same time.
In future, the two Chinese regulators vowed to deepen foreign exchange sector reform and opening to further improve cross-border trade and investment facilitation and optimize the centralized operation and management policies for cross-border capital pools of MNCs. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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