Shanghai's first 8 multinationals pool over 50 billion yuan in foreign debt under new rules

By Li Yingchao | Securities Times

According to the Shanghai Headquarters of the People's Bank of China (PBOC), the first eight multinational corporations in Shanghai have completed business filing for the centralized cross-border cross-currency fund operations for multinational companies (referred to as the "low-version cash pool"), which took effect on September 14, 2026.

These eight multinationals involve 55 domestic member companies and 10 overseas member companies. They have centralized external debt quotas exceeding 50 billion yuan and overseas lending quotas exceeding 8 billion yuan.

Several foreign banks, including HSBC, JPMorgan Chase, and Citibank, have also announced their participation in the first batch of business implementation, becoming the first foreign cooperative banks following the nationwide rollout of the new regulations.

Background of the New Policy

Earlier, in August, the PBOC and the State Administration of Foreign Exchange jointly issued the Notice on Matters Concerning Centralized Cross-Border Cross-Currency Fund Operations for Multinational Companies (the "New Policy"), launching the low-version cash pool business nationwide. The New Policy aims to extend the pilot business experience from June 2023 in Beijing, Guangdong, and Shenzhen to the entire country, benefiting more market entities. It further lowers the entry threshold for host enterprises registered in free trade zones and releases more policy dividends.

Key Features of the New Policy

"Multinational companies are important bridges connecting domestic and international markets and a key force in enhancing Shanghai's 'five centers' development," said the PBOC Shanghai Headquarters. Specific measures include:

• Lower entry barriers: Further reducing the threshold for cash pool business, supporting small and medium-sized multinationals in establishing low-version cash pools. Host enterprises registered in free trade zones may qualify for even lower thresholds.
• Simplified fund allocation: Facilitating centralized cross-border cross-currency fund transfers, consolidating member companies' external debt and overseas lending quotas, allowing multinationals to independently decide fund allocation ratios, and managing both domestic and foreign currency funds through a single account.
• Streamlined filing procedures: Simplifying the filing and registration process. Host enterprises can complete business filing with the local foreign exchange bureau, and certain changes can be handled directly at cooperative banks, reducing institutional transaction costs.

Foreign Banks Respond Quickly

Following the nationwide rollout, multiple foreign banks have swiftly responded as first-batch participating institutions.

HSBC China

HSBC Bank (China) Company Limited ("HSBC China") recently announced that it has launched cross-border cross-currency cash pool services for two multinational companies, becoming one of the first foreign banks to participate in the nationwide expansion.

Wang Yunfeng, President and CEO of HSBC China, stated: "The successive nationwide rollout of the cross-border cross-currency integrated cash pool and the centralized cross-border cross-currency fund operations marks the maturation of a tiered and categorized cash pool framework, precisely meeting the fund management needs of multinationals of different scales. This policy expansion allows more multinationals to conveniently build an 'overpass' for domestic and international fund flows, turning institutional dividends into development momentum. This open measure facilitating cross-border trade and investment helps further boost foreign multinationals' confidence in the Chinese market and provides tangible financial support for Chinese enterprises' global operations."

JPMorgan Chase China

Gu Wei, Vice President of JPMorgan Chase Bank (China) Company Limited and Head of Global Payments, Greater China, and Product Director for Greater China, said that under the guidance of the Shanghai Branch of the State Administration of Foreign Exchange, JPMorgan Chase, as a cooperative bank, assisted a multinational in the food and consumer industry and another in the advanced medical manufacturing sector in implementing the New Policy in Shanghai.

"A major highlight of the new regulations is the lowering of the entry threshold for cross-border cash pool business, enabling the policy to benefit more multinationals and provide tangible support to enterprises. This will further promote high-quality development of the real economy," Gu Wei said.

Citibank China

On September 21, Citibank (China) Company Limited announced that, leveraging its overseas branch resources, it had helped two multinational enterprise groups, including Comau (Shanghai) Engineering Co., Ltd., obtain approval for centralized cross-border cross-currency fund operations, becoming one of the first cooperative banks in Shanghai to implement the New Policy.

DBS Bank China

DBS Bank (China) Company Limited also announced on September 21 that it had successfully implemented the first batch of cross-border cross-currency centralized fund operations in Shanghai for a leading listed company in the domestic food segment, becoming one of the first foreign banks to participate in the nationwide rollout.

Standard Chartered Bank

Standard Chartered Bank has also begun deploying work related to the New Policy. The bank has tailored cash pool solutions for target clients and has officially launched the implementation of the business.