China's central bank has expanded the number of trade companies qualified for cross-border yuan settlement to 67,359, according to a statement posted on its website Monday. Originally, only 365 companies were qualified.
The People's Bank of China (PBOC) statement said the order took effect on December 3. 67,359 companies, from 16 provinces, municipalities and autonomous regions, was added in its pilot program and could begin transactions using renminbi and file for tax rebates and exemptions.
The move will further promote the development of the yuan cross-border settlement trial and facilitate trade and investment, the statement said.
The expansion marks a "leap forward for the cross-border yuan trade settlement," said Lian Ping, chief economist for the Bank of Communications, told China Business News on Monday, since "the number of trial enterprises increased by a large margin and the covered regions expanded from coastal areas to border trade regions." The original 300-odd companies are mainly located in Shanghai and Guangdong province.