Deutsche Bank completes transaction under new SAFE rules

Deutsche Bank announced on Wednesday that it has completed its first centralized management transaction of yuan foreign debt for its clients under China’s new rules for cross-border fund management.

The State Administration of Foreign Exchange released new rules on centralized cross-border fund management for multinational companies in March, increasing the foreign debt quota of multinationals’ domestic arms and allowing the yuan to be the currency of domestic master accounts.

Deutsche Bank set up a yuan domestic master account for engine maker Delphi Technologies to aggregate the foreign debt of the company’s onshore entities in China and support its capital expenditure and working capital needs. Delphi Technologies can now maximize use of its overseas liquidity, while managing foreign exchange risks centrally, the Germany lender said.

The recent changes help multinationals strengthen their businesses in China, said Carol Dong, Asia treasury manager at Delphi Technologies.

“With the new cross-border cash management solution, we can make better use of our overseas funds and expand our business here," she added.