Nikkei press carries the story:
- China to allow companies in a pilot free trade zone move renminbi funds freely to and from overseas
- Official announcement on the move could come as early as Friday
Companies registered in the free trade zone will be able to lend renminbi to affiliates in China and overseas, as well as borrow Chinese-currency funds from them. This will allow, say, a Japanese manufacturer to route earnings from its Chinese factories through the zone to its headquarters in Japan. The company would be able to pool its renminbi funds and allocate them as needed.
Until now, foreign multinationals looking to repatriate renminbi earnings or lend to their Chinese units have faced onerous procedural hurdles.
