Tag: safe

Taiwan encourages two-way RMB lending; India reverses emergency rupee controls; G20: Tax data to be automatically shared by 2015

Siemens, Alibaba, Huawei and ZTE are all in the second batch of SAFE’s pilot for cross-border FX cash sweeping, netting and centralised payments transactions, CT has learnt.

The country’s most recent import/export data indicates the old trade scam of over-invoicing is creeping back.

The discrepancy between China and Hong Kong's export/import data has narrowed to $6.3 billion in June after China's FX regulator started targeting fishy trade invoicing in April.

China’s central bank was the primary cause for the interbank lending spike, but "fake trading" precipitated the problem.

China’s central bank has lifted a host of restrictions designed to make renminbi cross-border trade settlement easier to conduct, while at the same time announced new measures to promote greater offshore renminbi activity.

China's central bank is set to allow companies to sweep their renminbi in and out of the country as part of a new pilot programme, CT understands. The news coincides with more major developments for the currency.

German car parts and tyre maker Continental has joined the club of multinationals approved by China’s central bank to transact renminbi intercompany loans out of China.

China’s FX regulator has simplified foreign debt registration which eases restrictions on back-to-back lending between banks in China and Hong Kong. James Wang Yong, an attorney at Han Kun Law Offices in China, explains its implications.

J.P. Morgan has provided its clients with advice on how to get the green light from the People’s Bank of China (PBOC) to conduct a cross-border renminbi intercompany loan. Here is a précis of the guidance:

US-listed Moog Inc, a designer and maker of precision control systems, is the latest addition to a handful of MNCs granted a quota from China’s central bank to make cross-border renminbi intercompany loans.

Tapping the new renminbi cash management pilots requires more than just approval from the state regulators, but also the sophistication and sound preparation of the treasury team who will implement it.