On April 17, the People's Bank of China, along with five other regulatory bodies, released a new guideline to facilitate and regulate international transfer of financial data.

The document clarifies the specific data categories eligible for outbound transfer, including streamlined procedures for scenarios such as cross-border payments, remittances, account openings, and shopping. Over 60 common financial scenarios have been outlined, with compliance options like exemption from security assessments, use of standard contracts, and personal data protection certifications.

To enhance its appeal to foreign investors and improve the financial operations of multinational companies, China is rolling out a series of reforms streamlining cross-border capital flows. From expanding cash pooling pilots to lifting restrictions on foreign-invested enterprises, regulators are signaling a strong commitment to institutional-level openness.

At the center of these changes is the nationwide promotion of the renminbi and foreign currency-integrated cash pool policy, a system that allows multinationals to manage cross-border funds more efficiently. Companies can thus unify both renminbi (onshore) and foreign currency (offshore) cash flows into a single operational system for efficient management.

Notable examples include the Switzerland-headquartered UBS Group, which recently received regulatory approval to increase its stake in UBS Securities Co. from 67 percent to full ownership. The move marks a milestone in UBS's integrated strategy across the Asia-Pacific region.

Iqbal Khan, co-president of global wealth management at UBS, said the full acquisition will allow the firm to deepen its investment banking and wealth management presence in China, taking full advantage of the country's financial opening.

The decision underscores the opportunities for foreign investors arising from China's capital market reforms, wealth creation, and demand for high-end financial services.

Besides technical infrastructure, China is also making institutional breakthroughs. In February, the Ministry of Commerce and the National Development and Reform Commission lifted restrictions on the use of domestic loans by foreign-invested holding companies, allowing such loans to be used for equity investment.

Bonar Environmental Equipment (Taicang) Co., which makes geotextiles and related materials for environmental applications, recently expanded in Taicang in east China. It was the firm's third expansion in eight years. According to the company, 30 percent of its annual profits from China will be reinvested locally.

This has become a trend. In 2024, over 40 percent of Taicang's utilized foreign capital came from profit reinvestment.

The policy momentum is matched by rising foreign financial engagement. BNP Paribas Securities (China) officially launched operations in Shanghai last month, becoming the fourth wholly foreign-owned securities firm in China, after J.P. Morgan, Goldman Sachs, and Standard Chartered.

In tandem, regulators are simplifying licensing processes in free trade zones and trial regions, reducing approval time for new foreign financial institutions from 180 to 120 days. Foreign firms are also allowed to participate in pilot programs for innovative financial services on an equal footing with their domestic peers.