China has lowered the requirements for cross-border companies participating in the yuan cash pooling

Almaty. October 6. Silkroadnews - China has lowered the requirements for cross-border companies participating in the yuan cash pooling, reported Xinhua news agency.
"China's central bank recently raised the maximum allowable cross-border transfers of capital in renminbi (yuan) by the operation of cross-border bilateral cash pooling. Also, the central bank lowered the threshold for cross-border corporations in this business", - said in a statement.
The upper limit of net inflows increased to 50% of the total shareholders' equity in the cash pooling.
Two-way cross-border cash pooling in the Chinese national currency allows cross-border companies more convenient to allocate capital within the corporation, improve the efficiency of cash management and reduce financing costs.
For the first time China has introduced cash pooling in the Shanghai Free Trade Zone in 2013, and in 2014 cash pooling was introduced throughout the country.
National Bank also lowered some requirements for companies that want to participate in yuan cash pooling. So in order to carry out such operations, the Chinese and foreign corporations need to function at least one year. Requirements to revenue lowered to 1 billion yuan (about US $160 million) and 200 million yuan respectively.