An employee at a bank counter in Nantong, East China's Jiangsu province, counts renminbi and US dollars. [Photo/China Daily]
China will roll out nationwide policies to facilitate centralized cross-border cash management by medium-sized multinational companies, while stepping up reforms on foreign exchange administration for both direct and securities investment, an official said, as part of efforts to deepen institutional opening-up under the capital account.
Xiao Sheng, head of the Capital Account Management Department of the State Administration of Foreign Exchange, said China has recently expanded nationwide the integrated renminbi and foreign currency cash pooling program, which applies to large or mega multinationals.
A separate set of policies for medium-sized multinationals on centralized cross-border fund operations will be rolled out nationwide this year, supporting more companies in managing cross-border funds flexibly and efficiently while boosting the development of the headquarters economy, Xiao said at a news conference on Thursday.
On foreign direct investment, Xiao said SAFE will push ahead with forex management reforms by simplifying related registration procedures and facilitating the use of investment funds, better supporting foreign businesses' expansion in China.
SAFE will also revise rules on integrated renminbi and foreign currency management for domestic firms' provision of funds to overseas affiliates to support companies going global, helping lower costs and improve efficiency, he added.
On securities investment, Xiao said regulators will further study improvements to cross-border cash policies for qualified foreign institutional investors, continue to issue investment quotas in an orderly manner for qualified domestic institutional investors, and work with relevant departments to advance stock and bond connectivity programs, further enhancing two-way opening-up of China's financial markets.
