China expands cross-border capital management for multinationals

The People's Bank of China and the State Administration of Foreign Exchange have issued a notice to expand cross-border centralized capital operations for multinational corporations nationwide. Effective September 14, 2026, the policy aims to support small and medium-sized multinational companies by lowering entry thresholds for establishing local and foreign currency capital pools.

Key provisions of the notice include facilitating the collection and allocation of cross-border funds, allowing corporations to manage funds through a single account to achieve group-level coordination. The policy also simplifies the registration process by utilizing a ‘single window’ at the local foreign exchange bureau. To encourage local currency use, the new regulations provide more flexibility for member enterprises to utilize funds according to group needs.