This photo taken from Jingshan Hill on Aug. 12, 2024 shows the skyscrapers of the central business district (CBD) on a sunny day in Beijing, capital of China. (Xinhua/Li Xin)
BEIJING, April 1 (Xinhua) -- Chinese authorities are mulling the nationwide expansion of a pilot cash-pooling program that integrates domestic and foreign currency management for large multinational enterprises, according to a draft regulation released on Tuesday to solicit public opinion.
A cash-pooling policy framework that integrates domestic and foreign currency management will be established to facilitate the transfer and use of funds, according to the document, which was issued by the People's Bank of China -- the country's central bank -- and the State Administration of Foreign Exchange.
Two-way macro-prudential management will be implemented for relevant cross-border capital flows, per the document, which also pledges to strengthen in-process and ex-post oversight to forestall related risks.
The regulation was formulated to facilitate the coordinated use of cross-border funds by enterprises, and to allow cross-border business services to support the real economy and promote trade and investment in an improved manner, the central bank said.
The cash-pooling program was first launched in Beijing and the southern economic powerhouse of Shenzhen in 2021. It was later expanded to include more regions, and optimized further in 2024.
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