ISSUING AUTHORITIES:

People’s Bank of China

State Administration of Foreign Exchange

DATE OF ISSUANCE:

August 13, 2026

EFFECTIVE DATE:

September 14, 2026

The People’s Bank of China and State Administration of Foreign Exchange (SAFE) have issued a notice to roll out cross-border cash pooling in both domestic and foreign currencies for multinational corporations nationwide, effective September 14, 2026. The policy replaces the 2019 regime and lowers thresholds for participation.

Lower thresholds. Domestic member enterprises must have combined international receipts and payments of at least RMB 700 million in the previous year, or combined domestic revenue of at least RMB 1 billion and overseas revenue of at least RMB 200 million equivalent. For lead enterprises registered in free trade zones, thresholds are halved: RMB 350 million in international receipts and payments, or RMB 500 million domestic revenue plus RMB 100 million overseas revenue. Financial institutions, local government financing vehicles, and real estate enterprises are excluded, except finance companies acting as lead enterprises. At least three member enterprises, domestic or overseas, are required.

Centralized quotas and current account netting. Multinationals may designate a domestic member enterprise as the lead enterprise to centralize foreign debt quotas and overseas lending quotas, with member enterprises deciding their own contribution ratio, adjustable once per year. Current account centralization and monthly netting settlement are also permitted. Cross-currency arbitrage between RMB and foreign currencies is prohibited.

Simplified filing and payments. Applications are filed with the local SAFE branch. The lead enterprise must open a domestic main account and commence business within one year. For capital account income payments from the main account, the lead enterprise may process payments directly at the cooperating bank upon a commitment of authenticity and compliance, without submitting supporting documents for each transaction in advance.

For multinationals, the notice reduces compliance costs and provides greater flexibility in cross-border liquidity management.

Reference:

中国人民银行 国家外汇管理局关于跨国公司本外币跨境资金集中运营业务有关事宜的通知