SIIC gets forex pooling, exchange service
Shanghai Pudong Development Bank has launched full-function cross-border RMB two-way cash pooling services for Shanghai Industrial Investment (Holdings) Co.
It is the first full-function cross-border cash pool for a Shanghai state-owned enterprise.
The cash pool will help integrate the group’s management of cross-border money flows, benefiting from the innovative financial services in the free trade zone.
The full-function cross-border cash pool enables a company to handle the pooling and conversion of foreign exchange.
SIIC can use the pool to ease onshore or offshore liquidity stress by moving cash cross the border within a quota.
SIIC has also effectively built a clearing center in the free trade zone with the help of the pool to unify global allocation of yuan and foreign currencies.
SPDB said it will develop more innovative financial products and services to facilitate trade and investment in the field, including cross-border transfer, cash management, and funds-raising.