Global firms reduce onshore China funding costs via cash pooling

Extension of cross-border scheme beyond Shanghai FTZ welcomed by corporate treasurers

Shanghai free trade zone
Shanghai's free trade zone

Global firms have taken advantage of China’s move last year to extend cross-border pooling of renminbi funds beyond the Shanghai free trade zone to achieve lower funding costs for their onshore subsidiaries via the offshore market, according to Ikea's head of Asia treasury.

At the start of 2014 Chinese authorities launched a pilot scheme to allow firms to centralise their offshore and onshore funds in the FTZ, and in June last year the People's Bank of China issued circular 323 extending the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: