China expands onshore central clearing system to include more foreign currencies

China: China is advancing the international role of the yuan through targeted expansions of its financial clearing and settlement infrastructure. In September 2026, the Shanghai Clearing House began providing central counterparty services for spot trades involving additional foreign currencies to facilitate direct yuan transactions. This aligns with ongoing policy efforts during the 2026-2030 period to broaden cross-border yuan use and enhance bilateral settlement mechanisms. Financial Opening: China has extended its nationwide cross-border cash pooling policy for multinational companies to enable centralized management of yuan and foreign currency funds. Clearing Infrastructure: The Shanghai Clearing House initiated central counterparty clearing services for spot trades in the Singapore dollar, New Zealand dollar, and Thai baht in mid-September 2026. Yuan Internationalization: China outlined plans in its 15th Five-Year Plan period to further open financial markets, improve cross-border yuan payments, and expand currency swap agreements with overseas counterparts.