HSBC Bank (China) Company has launched renminbi two-way cross-border sweeping for corporates in the China (Shanghai) Pilot Free Trade Zone (Shanghai FTZ). The first user is a subsidiary of Dover Corporation which is one of the first foreign-invested enterprises to transact such business in the zone.

The renminbi two-way cross-border sweeping enables multinational corporations to deploy funds on a pre-set automated basis between their onshore and offshore entities by linking their mainland and overseas cash pools. It also brings greater transparency to their operations and enhances their ability to optimise their working capital management. The new facility is expected to be used by other companies with regional treasury functions.

As the zone’s financial liberalisation continues, companies in the Shanghai FTZ will have wider options in financial solutions, such as cash management, funding and settlement, and a greater capacity to manage financial risk.

In December 2013, China unveiled a series of financial policy guidelines under which corporates in the Shanghai FTZ can conduct intra-group renminbi two-way cross-border sweeping for centralized settlement between associated onshore and offshore entities. As the zone’s financial liberalization continues, companies in the Shanghai FTZ will have wider options in financial solutions, such as cash management, funding and settlement, and a greater capacity to manage financial risk.