Global firms reduce onshore China funding costs via cash pooling
Extension of cross-border scheme beyond Shanghai FTZ welcomed by corporate treasurers
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
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