China will expand cash-pooling services for multinational companies to integrate domestic and foreign currency management on a larger scale, the country's monetary authorities said on Friday.

Shanghai, Guangdong, Shaanxi and some other regions will be added to the pilot program to facilitate the use and management of cross-border capital, said the People's Bank of China and the State Administration of Foreign Exchange.

New policies introduced into the program include increasing the number of pilot areas and companies and allowing multinationals to handle centralized receipts and payments of domestic and foreign currencies in China for their overseas subsidiaries. Moreover, authorities will further streamline yuan-denominated cross-border receipts and payments for multinationals.

The pilot cash-pooling program originated in the Chinese capital Beijing and the southern economic powerhouse of Shenzhen in March 2021. Since then, the program has managed nearly $50 billion in cross-border capital. The two state organs added that they would facilitate cross-border trade, investment, and financing and create a market-oriented, law-based, and internationalized business environment.

(Cover via CFP)