UOB completes 1st China-Thailand cross-border capital pool in Lin-gang
United Overseas Bank (China) has recently helped Zhongshan Lianchang Spray Pump Co Ltd, or CLC Lianchang - a well-known cosmetic packaging company - complete UOB's first China-Thailand cross-border renminbi capital pool business in Lin-gang Special Area in Shanghai.
The cross-border capital pool helped achieve timely and efficient transfer and direct exchange of foreign exchange between China and Thailand.
As a long-time customer of UOB, CLC Lianchang set up a Thailand factory in 2013 and vigorously expanded its Southeast Asian market. The expansion plan has encountered challenges such as difficulties in overseas financing, cross-border capital transfer and high cost of double exchange.
The company used to seek stable and efficient capital channels, which is crucial to achieve successful development of overseas business.
Lin-gang Special Area implemented several measures on May 8, 2020 to explore the cross-border capital pool businesses integrating RMB and foreign currency services in the area.
After understanding the company's business needs, UOB worked out a solution for setting up a new firm in Lin-gang Special Area so as to enjoy the favorable policy of the area.
UOB (China) also cooperated with UOB (Thailand) to tap into the advantages of Southeast Asian markets and further build the capital pool between China and Thailand based on mutual credit.
The Thailand factory of Zhongshan Lianchang Spray Pump Co Ltd [Photo/WeChat account: shlgguanweihui]
The industry-leading capital pool solution has brought tangible benefits. It has greatly saved time and labor costs with relevant policies. The solution connected domestic and overseas markets and achieved one-stop management of cross-border funds. In addition, the direct conversion of RMB to Thai baht reduced interest rate and tax costs of multiple exchanges for the customer.
UOB has established a direct way to flow funds between China and Southeast Asia for enterprises in Lin-gang, as well as providing experience for other corporations.
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