HSBC today announced that it has launched cross-border cash pooling services for two multinational corporations, following China’s nationwide rollout of a programme designed to enhance liquidity management for multinationals. The bank became one of the first foreign banks to participate in this rollout, which went into effect on 14 September.

The Centralised Operation and Management of Cross-Border RMB and Foreign Currency Funds programme, previously piloted in Beijing and Guangdong Province, is now available across the Chinese mainland. This expansion empowers a broader range of multinationals to manage their cross-border liquidity with more efficiency and flexibility.

Mark Wang, President and Chief Executive Officer of HSBC Bank (China) Company Limited (HSBC China), said: “This new framework brings greater simplicity and commercial flexibility to cross-border liquidity management for multinationals at a time when shifting trade flows and rate dynamics are reshaping their treasury strategy. It also helps enable international companies to optimise their China operations further for onshore growth while deepening integration into their global franchises.”

Early adopters of the expansion are already seeing tangible benefits. Carrier Global Corporation, a global leader in intelligent climate and energy solutions, was among the first to leverage the new framework.

Under the framework, multinationals can pool the foreign debt and overseas lending quotas of their member companies, determine the proportion of funds to be centralised, and manage RMB and foreign currency funds through the same structure. This enables funds to be allocated at the group level while allowing member companies greater flexibility in managing their liquidity.

To date, HSBC China has established over 260 cash pools for multinationals of various sizes, ranging from integrated RMB and foreign currency cash pools to cross-border fund centralisation solutions and RMB cross-border cash pools.

Re-disseminated by The Asian Banker