On September 14, the Notice on Matters Concerning the Cross-border RMB and Foreign Currency Capital Pool Business for Multinational Corporations, jointly issued by the People’s Bank of China and the State Administration of Foreign Exchange (SAFE), came into force. Reporters learned from SAFE Anhui Branch that on the first day of implementation, Tongling Jingda Special Magnet Wire Co., Ltd. completed filing for the cross-border RMB and foreign currency capital pool business, marking the official launch of such business for multinational corporations in Anhui Province.

It is reported that the cross-border RMB and foreign currency capital pool business for multinational corporations is designed to help small and medium-sized multinational enterprises conduct coordinated management of their cross-border RMB and foreign currency funds at home and abroad. Tongling Jingda Special Magnet Wire Co., Ltd. is a magnet wire manufacturer whose products are sold to markets across Europe, South America, Southeast Asia, the Middle East, Japan, the Republic of Korea and other regions, and widely applied in new energy vehicles, photovoltaic and other sectors. Through this filing, the company consolidated its foreign debt quota of RMB 15.53 billion and overseas lending quota of RMB 2.87 billion, and will carry out centralized receipt and payment of current account funds as well as net settlement on a net basis. Company officials stated that the capital pool business will cut financing and exchange costs, improve the efficiency of group capital management, support the expansion into international markets and optimize the layout of its global industrial chain.

A senior official with SAFE Anhui Branch said the branch will continue to step up policy promotion and outreach to raise policy awareness and coverage, foster corporate demand, guide more enterprises to fully leverage the policy benefits, and facilitate high-quality development of the province’s foreign-related economy.

Source: Anhui Daily