Many corporate entities in China have started using cross-border renminbi intra-company loans as a tool to maximize the use of their cash after the PBOC’s issuance of Circular No. 168 in July 2013.

 

As a result, the need for more efficient processes from banks has become a priority for China-based corporate treasurers.

 

To help its clients achieve this goal, Deutsche Bank has introduced automated renminbi cash sweeping services between cross-border intra-company accounts, thereby giving its clients an opportunity to gain time efficiencies. Corporates can set target balances and use this method to enhance their liquidity management.

 

“We are proud to be amongst the few foreign banks in China to offer this type of automated services. This speaks volumes about our technical capabilities and further demonstrates our client-centric approach. In addition, this will position Deutsche Bank well from a technical standpoint to offer new pilot services in the China (Shanghai) Free Trade Zone,” says Carl Wegner, greater China head of global transaction banking at Deutsche Bank.

 

Deutsche Bank received last November preliminary approval to set up a sub-branch in the China (Shanghai) Free Trade Zone, and it is currently working with its corporate clients on some of the new services announced in “PBOC’s Opinion on Providing Financial Support for the Development of the China (Shanghai) Pilot Free Trade Zone”, such as two-way renminbi cross-border cash pooling services, centralized payments and collections, and transaction processing  for renminbi direct investments.