Royal Bank of Scotland launched an automated yuan cross-border cash pooling solution for its clients in the Shanghai Free Trade Zone (FTZ),becoming the latest of a series of foreign and Chinese banks to do so.

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"The new solution permits free fund flow between the Shanghai FTZ companies and their overseas affiliate companies without the cross-border fund transfer restrictions that companies in China are currently facing," said Jonathan Jiang,RBS Head of Global Transaction Services in China.

Jiang said that the new solution will help Shanghai FTZ companies with extensive international operations to manage their yuan liquidity across the globe more effectively.

"They can easily move their RMB funds between their onshore and offshore entities,to support their global funding needs,in accordance with their business and treasury agenda," Jiang said.

China launched the Shanghai FTZ in September to help facilitate the country's financial liberalization.Many foreign banks,including Deutsche Bank,Citibank,DBS,Hang Seng Bank,HSBC,and Bank of East Asia,have received approvals to start operations in the pilot zone.

Meanwhile,China has been gradually liberalizing cross border sweeping over the past six months.In July,Citibank conducted its first one-way cross-border lending,for the French dairy company Danone,allowing the China entity to lend an amount in renminbi outside of China within the company.

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