Kathmandu— China will expand a program allowing multinational corporations to centrally manage their cross-border funds, including both renminbi and foreign currencies, nationwide starting September 14th. The move, announced Friday by the People’s Bank of China and the State Administration of Foreign Exchange, aims to provide greater financial flexibility for international businesses operating within the country. The program initially launched as a pilot in Beijing and Guangdong Province in 2023, and has already attracted over 260 multinational companies representing more than 5,500 affiliated entities globally. It allows these companies to pool debt and lending quotas, determine fund allocation at the group level, and manage funds through a single account.

Pilot Program Success

The cross-border cash pooling program, formally known as the centralized operation and management of cross-border RMB and foreign currency funds, proved successful during its initial phase. By the end of June 2026, more than 260 multinational companies had registered for the pilot program, benefiting over 5,500 member companies both within China and internationally. Officials state that this centralized management approach allows for efficient fund allocation at the group level while granting individual member companies increased operational flexibility.

Streamlined Registration Process

To facilitate wider adoption, regulators are streamlining the registration process for the expanded program. A single-window mechanism will be implemented at local branches of the foreign exchange regulator, simplifying applications. Additionally, cooperating banks will be authorized to handle certain registration changes, further reducing administrative burdens for participating companies.

Risk Management Measures

Alongside expansion and simplification, authorities are reinforcing risk management protocols. The notice outlines specific operational rules and requirements for both ongoing monitoring and post-transaction supervision. These measures are designed to mitigate potential risks associated with cross-border capital flows and ensure the stability of the financial system.

Two-Tiered Cash Management System

China now operates two distinct cross-border cash management programs tailored to different types of multinational companies. The integrated RMB and foreign currency cash pooling program caters to larger multinationals, offering greater flexibility and higher transfer limits but with stricter entry requirements. This expanded centralized operation and management program targets a broader range of businesses, providing lower barriers to entry and simpler procedures alongside somewhat reduced transfer ceilings.

The nationwide rollout is expected to further enhance China’s attractiveness as a destination for foreign investment by simplifying financial operations for multinational corporations.

(With inputs from Xinhua)

Originally published on abcnews.com.np.