04 July 2023
On 4 July 2023, the State Administration of Foreign Exchange of Shenzhen Municipality issued the "Regulations on the Concentrated Operation and Management of Cross-Border Funds in Foreign Currencies by Multinational Corporations (Pilot)" (“the Regulations”). The Regulations clarify provisions for centralized management of overseas loan quotas and account management. Specific regulations include allowing multinational corporations to centrally manage the overseas loan quotas of domestic member companies based on macro-prudential principles, and to conduct overseas loan business within the centralized quota in accordance with commercial practices. Multinational corporations may also, according to operational needs, select one overseas member enterprise to open an offshore institutional domestic and foreign currency account (NRA account) in a cooperative bank that has been registered, and concentrate the operation and management of funds from overseas member enterprises. The regulations are effective from 4 July 2023.