The People's Bank of China and the State Administration of Foreign Exchange recently decided to expand the pilot program for integrated local and foreign currency fund pools for multinational companies in 16 provinces and cities, including Xiamen, to facilitate the coordinated use of cross-border funds by multinational corporations.

On March 21, the Bank of China Xiamen Branch implemented the first pilot program of integrated local and foreign currency fund pools for multinational companies in Xiamen, under the new policy.

"The fund pool policy has been further upgraded, now integrating both local and foreign currency funds, making fund allocation more convenient," said TPK Holding Co Ltd. The company highlighted how Bank of China Xiamen Branch assisted them in completing the new fund pool filing and processing the first cross-border fund transfer transaction, achieving "instant application, minutes processing". 

Through the cross-border fund pool, direct loans were facilitated, significantly improving fund utilization efficiency and reducing overall costs by 100 basis points compared to overseas direct financing.

This policy upgrade further facilitates the centralized collection and payment of funds for multinational companies, enhances the efficiency of cross-border fund management, and simplifies the procedures for fund pool changes.

Since the introduction of the new policy, the Xiamen Branch has been promoting international fund management and efficient connection of domestic and foreign funds. Moving forward, the branch will continue to leverage its global network and the "global cash management+" product service system to assist enterprises in achieving flexible allocation and efficient operation of operating funds on a global scale.