Press release
First non-quota based RMB two-way cross-border sweeping transaction with Baoxin group
First transaction after PBoC Circular on RMB cross-border business which allows banks to approve two way cross border sweeps without quota restrictions and PBOC sign off
Standard Chartered Bank (China) Limited (“Standard Chartered China”) today announced that it has approved the first non-quota-based RMB denominated two-way cross border sweeping transaction for Baoxin Auto Group Limited (“Baoxin Group”).
This announcement follows the release of PBoC Shanghai Headquarters’ notice on supporting China’s (Shanghai) Pilot Free Trade Zone (PFTZ) and promoting RMB cross border business (the Rules), which allows banks in the PFTZ to approve non-quota based two-way cross border sweeps without PBOC’s sign off.
Baoxin Group – an automobile sales and service group focusing on mid and high end automobile brands which include luxury and ultra-luxury vehicles – now has greater visibility, control and flexibility in managing its onshore and offshore RMB denominated cash flow. In the current structure, Baoxin Group’s transfers are managed through its lead entity in the PFTZ. Fund transfers from its participating subsidiaries into the cash pools inside and outside of the PFTZ can now be initiated through its PFTZ office without quotas or PBoC signoff.
Mr Biswajyoti Upadhyay, Head of Global Corporate and Transaction Banking at Standard Chartered China, said: “The rules released by PBoC further support the development of the RMB cross-border business, and Standard Chartered China is delighted to partner with Baoxin Group to initiate this leading self-approved RMB two-way pooling business, and become the first to launch the non-quota-limited transfer. We will continue to innovate on RMB-related financial products to support the financial transformation of the PFTZ and further promote the progress of RMB internationalisation.”
Sridhar Kanthadai, Regional Head of Transaction Banking for North East Asia added, “The evolving regulatory framework around the internationalisation of the RMB offers key opportunities for our clients to unlock efficiencies in working capital management. The Shanghai PFTZ is an important milestone in this evolution, and we are pleased to enhance our clients’ PFTZ based entities’ working capital management through leading RMB linked financial solutions.”
Expanding cross-border usage of the RMB is key to the PFTZ’s financial transformation. The PBoC Rules for the Implementation of RMB Cross-border Trading released by PBoC today outlines the government’s support of the implementation of RMB cross-border pooling businesses that are approved by banks themselves.
Standard Chartered China is committed to providing high-quality RMB cross-border services to enterprises and continues to be an industry leader in this area. To date, Standard Chartered China has supported 19 enterprises in their RMB cross-border lending which has totalled CNY 39 billion.
For further information, please contact:
Dora Bao
Business Communications Manager, Corporate Affairs, China
Standard Chartered Bank
+8621-3851 8629
Xinyan.Bao@sc.com