Shanghai FTZ Welcomes First Global Treasury Center
by Lorys Charalambous, Lowtax.net, Cyprus
11 October, 2017
The Shanghai Pilot Free Trade Zone has welcomed the setting up of a global treasury center – the first of its kind for the Zone – by multinational enterprise the Aland Group.
Aland Group opened a non-resident free trade account under Citi China's advanced cross-border pooling program. The free trade account was launched in 2014 in the Zone by China's central bank, the People's Bank of China, to test China's capital account conversion in a risk-controlled environment.
Since then, the Shanghai head office of the People's Bank of China has encouraged the establishment of a fully functional onshore cross-border RMB pool, so that multinational enterprises can centralize management of their global RMB funds.
Aland President, Chang Liang, said the new cash-pooling structure enables the group to achieve its objectives of global treasury centralization and concentration of domestic funds in the treasury center.
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