Tianjin’s First Batch of FT Full-Function Cross-Border RMB Capital Pool Successfully Operates

On December 8, the first batch of free trade (FT) full-function cross-border RMB capital pool was successfully put into operation in Tianjin, being another important achievement of financial sector servicing real economy in Tianjin Pilot Free Trade Zone. It will play an important role in speeding up the nurture of a new development pattern that takes the domestic market as the mainstay while letting domestic and foreign markets boost each other.

The full-function cross-border RMB cash pool is an innovative application based on FT account system. With the combination of domestic and foreign currencies, the convertible cash in the account, and the convenience of cross-border fund settlement, transnational enterprises can collect funds by the currency they choose between the overseas member enterprises and the host enterprises in FTZ, or between the overseas host enterprises and the overseas member enterprises in FTZ. Multinational enterprises who establish a capital pool of domestic and foreign currencies can meet the needs of cross-border transfer of domestic and foreign currencies, and use funds more freely.

Compared with the traditional two-way cross-border RMB capital pool, the full-function cross-border RMB capital pool has no limit on the operating revenue, net assets and equity ratio of the enterprises in the pool. Its only requirement is that the domestic and foreign member enterprises have been established for one year. The host enterprises can be domestic enterprises or overseas enterprises. The capital pool broadens the choice of multinational enterprises, provides more space for their financial funds, and attract more headquarters of multinational enterprises to settle in Tianjin FTZ.