China Upgrades Cross-Border Funds Pilot for Multinationals

China is upgrading a pilot program that facilitates cross-border use of funds for multinationals, trialing greater freedom for eligible companies based in Beijing, Shenzhen and Guangdong province, according to a regulatory announcement Friday.

The pilot, launched in March 2021 by the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE), allows certain multinationals to combine their cross-border multiple-currency and yuan cash pools into a single pool, and buy foreign currencies at will, within certain limits, for making overseas payments.