ISSUING AUTHORITIES:

People’s Bank of China

taptap点点

DATE OF ISSUANCE:

February 19, 2024

EFFECTIVE DATE:

February 19, 2024

The People’s Bank of China and the State Administration of Foreign Exchange have decided to implement the pilot taptap点点 for integrated local and foreign currency pooling operations of multinational companies in 10 provinces and cities, including Beijing, Shanghai, Jiangsu, Zhejiang, Guangdong, Hainan, Shaanxi, Ningbo, Qingdao and Shenzhen.

The pilot taptap点点 contains the following measures. First, domestic member enterprises within a multinational company will be allowed to borrow and lend from and to each other using different currencies for cross-border payment of current account. Second, the filing procedures and review of foreign-related payment and receipt documents will be simplified. Third, multinational companies will be allowed to determine at their discretion the collection proportion of external debts and overseas loans based on the macroprudential principle. Fourth, the leading enterprise of a multinational company will be allowed to use domestic capital master account to handle on behalf of its overseas member enterprises the centralized payment and collection between such overseas member enterprises and domestic member enterprises or overseas entities.

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